Petrol Price To Drop To ₦935 Per Litre Starting Monday

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol prices will decrease to ₦935 per litre starting Monday. This development is due to a new pricing arrangement by Dangote Refinery, which includes a reduction in the ex-depot price.

Key Details About the Price Drop

According to IPMAN’s National President, Alhaji Maigandi Garima, the new price results from a uniform pricing structure introduced by Dangote Refinery. The refinery recently reduced its ex-depot price from ₦970 to ₦899.50 per litre, offering marketers more favorable terms, including a consistent rate across outlets nationwide.

The initiative aims to lower transportation costs during the festive season and beyond. Currently operational in Lagos, the new pricing scheme will expand to all regions by Monday.

Partnership for Nationwide Reach

Dangote Refinery has partnered with MRS Oil Nigeria to ensure the reduced prices reach consumers. Petrol will be sold at ₦935 per litre across MRS retail outlets nationwide.

Alhaji Garima praised Dangote Refinery’s efforts, stating:

“The refinery has introduced a fixed ex-depot price of ₦899.50 per litre, which will stabilize fuel prices across the country. We expect this arrangement to take full effect by Monday.”

Benefits of Deregulation

Garima noted that deregulation in the downstream sector has fostered healthy competition, which is expected to drive continuous fuel price reductions. He also highlighted the benefits of increased private sector involvement in the refinery business, predicting more significant price drops as additional refineries commence operations.

Historical Perspective

During the 2023 festive season, fuel prices soared to as high as ₦2,000 per litre in some parts of the country due to reliance on imports. However, the establishment of local refineries has drastically reduced these costs, with prices currently capped at around ₦1,100 per litre in those regions.

Garima expressed optimism about the resumption of production at Warri and Kaduna refineries, emphasizing the positive impact on fuel affordability and the overall economy.

A Boost for the Economy

The Nigerian National Petroleum Corporation (NNPC) has also reduced its ex-depot price from ₦1,020 to ₦899, signaling a significant response to deregulation and heightened industry competition.

Garima commended the crude oil swap deal involving the Naira, describing it as a strategic move for economic growth.

Conclusion

This price reduction is a testament to the ongoing transformation within Nigeria’s downstream sector. With the introduction of more private refineries and favorable pricing strategies, consumers can look forward to more affordable fuel prices in the coming months.