In a move that may bring much-needed relief to Nigerian consumers, Dangote Petroleum Refinery has announced a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. The new price, effective immediately, stands at N890 per litre, down from N950.
This price cut is a direct result of two key factors:
- Falling Crude Oil Prices: The recent decline in global crude oil prices, with Brent Crude closing at $75.67 per barrel on Friday, has played a significant role. This decrease has enabled Dangote Refinery to adjust its ex-depot price accordingly.
- Commitment to Market Dynamics: The refinery has consistently emphasized its commitment to passing on the benefits of favorable market conditions to Nigerian consumers. This latest price reduction follows a similar review in January, where a modest increase was implemented due to rising crude prices.
Impact on Consumers
While the ex-depot price has been reduced, fuel prices at filling stations in Lagos still range between N960 to N990 per litre. However, Dangote has urged oil marketers to pass on these savings to consumers, ensuring that the price reduction translates into lower pump prices across the country.
Industry Reactions
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has welcomed this price drop, highlighting the benefits of deregulation in allowing market forces to dictate pricing for the benefit of the public. Furthermore, the growing trend of marketers sourcing fuel from refineries in Port Harcourt and Warri signals a positive shift towards diversified supply chains, which could further enhance competition and potentially lead to more competitive fuel prices in the Nigerian market.
Looking Ahead
This development marks a significant step towards more affordable fuel prices in Nigeria, offering much-needed relief to consumers struggling with the high cost of transportation. As the Nigerian oil and gas sector continues to evolve, consumers can expect to see further adjustments in fuel prices based on global market trends and increased competition among suppliers.