Nigeria’s petroleum marketers have indicated that the price of Premium Motor Spirit (PMS), commonly known as petrol, could fall to between N900 and N1000 per litre by the upcoming Yuletide season, driven by the intervention of Dangote Refinery.
In separate interviews on Monday, the President of the Petroleum Products Retail Outlet Owners Association (PETROAN), Billy Gillis-Harry, and the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, shared insights into the anticipated price adjustments.
This follows a recent move by Dangote Refinery, which on Sunday announced a reduction in its ex-depot petrol price from N990 to N970 per litre, a N20 drop. The refinery stated that the price cut was a gesture of appreciation to Nigerians for their continued support.
The price reduction is also seen as a positive development after the refinery’s recent agreement with Nigeria’s oil marketers to enable direct petrol purchases from Dangote’s facilities.
Gillis-Harry expressed optimism that the recent price cut would lead to a further reduction in petrol prices, particularly during the festive season. “The price of petrol may even drop further depending on global crude oil prices and the Dangote refinery’s operations,” he said. “This is a good development for both Nigerian consumers and petroleum industry players.”
He further noted that PETROAN members are optimistic that the ongoing trend of price reductions could continue as the Yuletide approaches, although the exact price will depend on the cost of transporting the product to various filling stations across the country.
Similarly, Ukadike highlighted that the price cut by Dangote Refinery would lead to a reduction of between N15 and N20 per litre at IPMAN-affiliated filling stations, depending on the location. He revealed that many IPMAN members had already adjusted their prices in recent weeks, bringing the cost of petrol down from as high as N1200-N1300 per litre to between N1100 and N1150 per litre.
“The market is healthier now, with prices trending downward rather than increasing,” Ukadike said. “We expect that by December 2024, the lowest price Nigerians should expect will be between N900 and N1000 per litre.”
Last month, fuel prices saw significant fluctuations, with prices rising from N617 per litre in August 2024 to as high as N1060-N1150 per litre. However, with the latest price cuts and the involvement of Dangote Refinery, there is growing hope that petrol prices will stabilize and become more affordable for Nigerians by the end of the year.
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