Retail prices at filling stations across the country would drop as a result of Dangote Refinery’s recent premium motor spirit ex-depot price cut, according to petroleum marketers and merchants.
The 650,000 barrels per day refinery in Lekki, Lagos State, gave clients a N10 return on PMS purchased at N835 a litre on Monday, according to The Intercept.
In separate interviews on Monday, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, and the National Secretary of the Independent Petroleum Products Marketers Association of Nigeria both affirmed the N10 reimbursement.
The refinery’s partner filling stations, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil filling stations, are expected to modify their petrol pumps in the days ahead due to the most recent decline in the gantry price of Dangote fuel.
According to information obtained by The Intercept, as of Monday night, MRS and other affiliated filling stations with Dangote Refinery offer gasoline for N910 per litre.
MRS Fillings, located along the Kubwa Motorway in Abuja, will evaluate its gasoline pump at N900 per litre on Wednesday and Thursday of this week, a staff member told The Intercept journalist.
“We would start selling our petrol at a new price of N900 per litre between Wednesday and Thursday,” he told The Intercept anonymously.
In the upcoming days, the state-owned company may further lower its petrol price to about N880 or N900 per litre, according to an excellent source inside NNPCL who wished to remain anonymous.
As of the time the story was filed, attempts to talk with Anthony Chiejiena, the spokesperson for the Dangote Group, on the new petrol price review were failed.
According to The Intercept, since the Federal Government, acting through the Nigerian National Petroleum Company Limited, extended its naira-for-crude agreement with the $20 billion refinery on April 9, Dangote Refinery has lowered the price of its fuel at least three times.
The refinery reduced the ex-depot price of gasoline from N880 per litre to N865 on April 10.
A few days later, Dangote Refinery declared a second cut in the price of gasoline, this time from N865 to N835 per litre.
The refinery’s most recent pricing then fell to N825.
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In response, IPMAN National Secretary James Tor stated that since the nation’s downstream petroleum industry was deregulated, evaluations of fuel prices have been routine.
He asserts that lowering the price of fuel at the Dangote plant is likely to have an impact on the entire market.
“Our members are used to price reduction; this is because the prices of premium motor spirits are determined by market forces since we have accepted deregulation of the sector.
“We buy from MRS, NIPCO, NNPC, and others, so if there is a decrease in PMS price at their end, it will cut across,” he told The Intercept.
Speaking on the partnership between NNPCL’s new management, led by Bayo Ojulari, and the Dangote Group, he said it would stabilise the country’s petrol market.
“It will stabilise the downstream petroleum market. It means that the industry will have a sense of direction,” he added.
Also, PETROAN’s president, Gillis-Harry, lamented the continued petrol price instability as a result of Dangote Refinery’s incessant price cuts.
Meanwhile, he said the petrol price would be reviewed downwards across the board in response to Dangote Refinery’s latest price cut.
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“The thing is that the constant up-and-down movement of petrol prices really needs to be paid attention to.
“The stability of the industry is based on consistent prices. I don’t think the Petroleum Industry Act (PIA) is saying we just wake up and see the new price.
“Probably, it is a strategy to have the biggest market share. Even at that, there must be capital to be able to buy products.
“Certainly, there will be a change in the prices of PMS across the board. But this is artificial. That is the challenge.
“We should allow the market forces to determine prices. There is a style of business that is aimed at capturing the market with heavy investment.
“PETROAN welcomes the relationship and applauds it, provided it will make Nigeria better and boost the access to energy,” he told The Intercept.
This comes as oilprice.com reports that as of 3:47 am on Tuesday, the price of Brent and WTI crude blends dropped to $64.72 and $61.72, respectively.
Remember how Aliko Dangote, the head of the Dangote Group, and his crew paid a visit to NNPCL’s new management last week?
