A slash in the pump price of petrol is likely following Dangote refinery reduction of its ex-depot price from N990 to N970 per litre.
The refinery conveyed the new price regime in a statement by its Group Chief Branding and Communication Officer, Anthony Chiejina.
The statement said: “Dangote Petroleum Refinery has affected a reduction in the prevailing price of its Premium Motor Spirit (PMS) from N990/litre to N970/Iitre for the marketers.
“As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the Refinery a dream come true.
“In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective wellbeing.
“While the refinery would not compromise on the quality of its petroleum products, we assure you of best quality products that are environmentally friendly and sustainable.
“We are determined to keep ramping up production meet and surpass our domestic fuel consumption; thus, dispelling any fear of a shortfall in supply.”
As at yesterday, a litre of petrol sold for between N1,080 and N,1,090 at stations operated by the Independent Petroleum Marketers Association of Nigeria (IPMAN) members in Lagos.
Major marketers sold it for between N1,060 and N1,080.
A litre of petrol was selling for N1,025 at NNPCL-run retail outlets as at yesterday. The N20 cut in the Dangote Refinery’s ex-depot price is expected to reflect at the pumps soon.
PETROL retail marketers said they would respond to the cut accordingly.
The Petroleum Products Retail Outlet Owners of Nigeria (PETROAN) said it will work out the logistics before arriving at new pump prices following the reduction from the Dangote Refinery.
PETROAN National President Dr. Billy Harry said since it has to do with real value, the association will not rely on an armchair projection.
Asked how soon his members would respond to the ex-depot price cut, he said they would still meet with the management of the refinery before effecting the change.
He said: We cannot tell you now before the reduction we will work out the logistics and a lower price and the retail outlets will come up.
“We have to work out the logistics first. It is not an armchair projection. It is of real value. PETROAN is having a meeting with Dangote.”
The refinery and the association have been in talks on modalities for selling products to them directly instead of going through the Nigerian National Petroleum Company Limited (NNPCL).
The Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi could not be reached up till last night.
Last month, promoter of the refinery Aliko Dangote and President/Chief Executive of the Dangote Group, said his refinery had more than 500 million litres of petrol in stock.
Earlier this month, IPMAN called on the refinery to engage stakeholders and review its pricing strategy, saying the refinery prices were higher than other suppliers, making it difficult for independent marketers to sell products.
But last week, IPMAN reached a truce with the refinery to directly lift petroleum products for distribution to its members’ depots and retail outlets across the country.