Despite a recent price cut by Dangote Petroleum Refinery, petrol pump prices remain unchanged at many stations across Nigeria. The refinery reduced its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, to N899.50 per litre, down from N970 per litre. However, petrol stations in Lagos continue to sell at N1,025 or higher, with major oil marketers pricing it at N1,070 and independent marketers reaching as high as N1,100 per litre.
Price Reduction Expected to Provide Relief
The refinery’s price cut was intended to alleviate transport costs for Nigerians ahead of the festive season. Dangote Refinery announced that for every litre purchased on a cash basis, buyers could receive another litre on credit, backed by guarantees from Access Bank, First Bank, or Zenith Bank.
Speaking on the situation, Maxi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), praised the refinery’s initiative. He urged marketers to ensure that consumers benefit from the reduced ex-depot price.
Market Deregulation and Economic Impact
An anonymous expert attributed the lack of price adjustment at petrol stations to market deregulation. The recent drop in crude oil prices, from $73 to $72 per barrel, should have driven refiners and marketers to pass on cost savings to consumers.
“The market is deregulated, and refiners are paying less for crude oil. These factors should ideally lead to lower petrol prices,” the expert noted.
Commitment to Quality Products
Dangote Refinery emphasized its dedication to providing high-quality, environmentally friendly petroleum products at competitive prices. Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group, stated that the refinery aims to end Nigeria’s dependence on substandard imported petroleum products, which pose risks to health, machinery, and the environment.
“We are committed to ensuring Nigerians have access to premium-quality products. Our operations signify a turning point in eliminating substandard fuel imports,” Chiejina remarked.
Outlook
While the price cut from Dangote Refinery signals an effort to ease costs for Nigerians, the lack of adjustment by marketers highlights persistent challenges in the deregulated market. As Nigerians brace for the festive season, consumers await broader compliance from petrol marketers to align pump prices with the refinery’s ex-depot reductions.
