The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has issued a directive to fuel marketers, urging them to reduce the pump price of Premium Motor Spirit (PMS), also known as petrol, following a recent price cut in the ex-depot rate by Dangote Refinery.
According to reports from Gistreel, Dangote Refinery announced a reduction in the ex-depot price on Saturday, lowering it from ₦950 to ₦890 per litre. This decision was made in response to falling global crude oil prices and an optimistic forecast for the international energy market.
This price adjustment comes shortly after Dangote Refinery had raised fuel prices due to an increase in crude oil prices. The reduction is seen as a positive move, reflecting a favorable shift in the market dynamics.
In a statement released by the company, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Refinery, explained that the price cut is in line with the company's commitment to transparency and responds to global market trends. He further emphasized that the reduction of the ex-depot price from ₦950 to ₦890 is expected to ease the overall cost of living by lowering petrol costs across the nation, which in turn could lead to a reduction in the prices of goods and services.
The refinery also appealed to fuel marketers to collaborate in ensuring that consumers fully benefit from this price reduction. This collective effort, according to Dangote Refinery, would contribute positively to Nigeria's economic recovery plan under President Bola Ahmed Tinubu, who is focused on making Nigeria self-sufficient in refined petroleum products and positioning the country as a major oil export hub.
In reaction to this development, PETROAN’s National President, Billy Gillis-Harry, expressed his support for the price reduction. However, he pointed out that the immediate implementation of lower prices at filling stations might prove challenging. This is because many fuel stations have already stocked fuel at the previous, higher prices. He noted that these stations may not be able to immediately reflect the price changes until their existing stock is depleted.
Nonetheless, Gillis-Harry urged marketers who purchase petrol at the new ex-depot price of ₦890 starting from Sunday (today) to ensure that the revised price is reflected at their retail outlets promptly.
Recent Price Adjustments by Dangote Refinery:
December 19, 2024: The price was reduced by 7.5% to ₦899.50 per litre.
January 17, 2025: The price was increased to ₦955 per litre due to rising crude oil costs.
January 27, 2025: The price was lowered to ₦890 per litre following a drop in global crude prices.