In response to a recent decision by the Dangote Petroleum Refinery, major downstream petroleum marketers in Nigeria, such as Ardova (AP), MRS, Heyden, Optima Energy, and Tecno Oil, have drastically reduced fuel pump prices.
Effective April 16, the refinery lowered the ex-depot price of Premium Motor Spirit (PMS) from N865 per litre to N835. Marketers purchase ex-depots from the Dangote refinery.
BrandSpur national news stories report that retailers connected to Dangote’s distribution network have responded by modifying prices in strategic areas:
- Lagos: N890 per litre, down from N920
- South-West: N900 per litre, down from N930
- North-West and North-Central: N910 per litre, reduced from N940
- South-East, South-South and North-East: N920 per litre, previously N950
Given the rising cost of living and the increased demand during the Easter season, it is anticipated that the updated pump prices will provide relief to drivers and transport operators.
The pricing changes are part of a larger plan to stabilize fuel prices, guarantee supply stability, and reduce inflationary pressures nationwide, according to a statement from Dangote Refinery.
The statement partly reads: “Dangote Petroleum Refinery has consistently worked to reduce the prices of petrol and other refined petroleum products, ensuring the continued benefit of Nigerian consumers.
“We anticipate that this latest reduction in PMS prices will generate a positive ripple effect throughout various sectors of the economy, providing much-needed relief to consumers and contributing to broader economic growth, particularly during the Easter season.
“Furthermore, Dangote Petroleum Refinery calls on industry stakeholders, including marketers and distributors, to continue sourcing their products from the refinery, ensuring that the benefits of these price reductions are fully realised across the country,” it added.
The Dangote refinery’s contribution to the global decline in petroleum product prices was deemed inconsequential by S&P Global in a report available to BrandSpur Nigeria news today. According to Punch, it stated that the refinery had not sufficiently reduced the costs of its services and that the importation of gasoline was still highly alluring.
It partly reads: “Incentives to ship products to West Africa have also come from the pricing at Nigeria’s Dangote refinery. While flat prices have been driven down massively amid falling crude prices, Dangote has not lowered gantry prices for truck volumes significantly.”
The Nigerian National Petroleum Company Limited (NNPCL) lowered the price of petrol at the pump to N910 per litre, a 15-naira decrease from the previous rate of N925, according to a previous report. Gasoline sold by Dangote Refinery and its associate marketers, such as Ardova, is still less expensive despite the change.
