Dangote Petroleum Refinery has reduced the price of Premium Motor Spirit (PMS) from N990/litre to N970/litre, signaling a gesture of appreciation to Nigerians. This comes amidst growing competition in the deregulated oil sector, with plans to ramp up domestic fuel production.
In a move to appreciate Nigerians as the year comes to a close, the Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) from N990 per litre to N970 per litre.
The new price, which will apply to marketers purchasing directly from the refinery, marks a significant development in the domestic fuel sector.
Also read: Dangote Refinery begins fuel exports to West Africa, eyes regional market dominance
Anthony Chiejina, the Group Chief Branding and Communications Officer of the Dangote Group, emphasized that the price reduction is a token of gratitude to Nigerians for their support in bringing the refinery to fruition.
He also extended appreciation to the government for its backing, which has been instrumental in the success of the refinery.
“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 well-being,” Chiejina stated.
While expressing confidence in the quality of products, Chiejina assured Nigerians that Dangote Petroleum Refinery would maintain high standards in fuel production.
He also reassured consumers that the refinery would continue ramping up production to meet domestic fuel consumption needs, alleviating concerns over supply shortages.
The reduction in fuel prices comes as the Major Energy Marketers Association of Nigeria (MEMAN) reported that the cost of imported petrol had risen to N971 per litre, highlighting the ongoing shifts in Nigeria’s deregulated oil market.
As competition increases among marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), pump prices have started to fall in various parts of the country.
IPMAN’s spokesperson, Chinedu Ukadike, noted that the agreement with Dangote to purchase directly from the refinery has already led to a noticeable drop in prices, with some stations reducing rates by N10 to N15 per litre.
Ukadike also predicted further price reductions as IPMAN members expand their transactions with Dangote, ultimately pushing prices lower as competition intensifies.
Additionally, the recent deregulation of the downstream sector has further contributed to price reductions, as marketers no longer rely on middlemen but instead buy directly from domestic refineries.
This has allowed for more competitive pricing, and analysts expect prices to continue fluctuating, with some reductions still on the horizon.
A significant agreement involving Dangote Petroleum Refinery and key stakeholders in the Nigerian oil sector is said to guarantee the supply of 28 million litres of petrol daily for local consumption.
This deal, which aims to prioritize the Nigerian market over exports, marks another step toward reducing Nigeria’s dependence on imported petroleum products and improving the stability of fuel prices.
Despite the positive developments, the Nigerian National Petroleum Corporation (NNPC) has denied knowledge of the 28 million litres per day agreement, and some parties, including PETROAN, continue to advocate for further collaboration to ensure a steady and affordable supply of petroleum products.
The price reductions and ongoing initiatives signal promising changes in Nigeria’s fuel sector, contributing to the overall goal of improving domestic fuel production and fostering competition for the benefit of consumers.
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