DANGOTE CUTS PETROL EX-DEPOT PRICE BY N50 TO 1,075/LITRE
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HOTJIST NEWS
The Dangote Petroleum Refinery has lowered the ex–gantry price of Premium Motor Spirit, commonly called petrol, from N1,125 per litre to N1,075 per litre, according to The PUNCH.
This latest change is a N50 or 4.4 per cent decrease from the previous price and is likely to increase competition in Nigeria’s downstream petroleum industry.
The new price cut of N50 per litre is the second reduction in just seven days, following a drop from N1,175 to N1,125 per litre.
A senior official of the Dangote Petroleum Refinery, who pleaded anonymity because he was not authorised to speak publicly, said the new pricing regime took effect immediately.
“The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre. This is part of the refinery’s efforts to make products more accessible and competitive in the market,” the official said.
The official further disclosed that the refinery had suspended its 20-member consortium arrangement, opening product loading to all qualified marketers.
“The consortium arrangement has been cancelled. Loading at both the gantry and coastal terminals is now open to all marketers that meet the necessary requirements. The objective is to deepen market access and ensure seamless distribution of products across the country,” the source added.
Checks on petroleumprice.ng also confirmed the new ex-depot price of N1,075 per litre at the Dangote refinery.
The latest reduction could compel filling stations to adjust their pump prices downward in the coming days, especially those sourcing products directly from the refinery.
The development comes amid increasing competition in the downstream sector and renewed efforts by the Federal Government to ensure that Nigerians benefit from the deregulation of the petroleum market.
Earlier this week, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, insisted that fuel prices in a deregulated market would be determined by market forces and competition rather than government directives.
The minister had maintained that the era of government-fixed fuel prices was over, stressing that increased domestic refining capacity would naturally lead to more competitive pricing and improved energy security.
Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has repeatedly stated that petrol prices must remain cost-reflective under the deregulation regime.
The authority recently warned against unfair price increases and random pricing in the downstream market, saying that companies must follow fair competition and be open and honest.
Also, the Federal Competition and Consumer Protection Commission has always supported fair market competition, stating that customers should get lower prices because of better supply and more competition.
The latest price drop by Dangote is part of a series of N50 reductions the refinery has made since it started selling large amounts of petrol in the local market.
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