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The Nigerian National Petroleum Company Limited (NNPC) and other marketers have reduced the pump prices of Premium Motor Spirit (petrol) following Dangote Petroleum Refinery’s cut in ex-depot prices.
From as high as N950 per litre on Tuesday, petrol now sells for as low as N865 per litre, depending on the location. Checks by our correspondent on Friday confirmed that almost all filling stations in Lagos and Ogun had dropped prices below N900 to remain competitive. From N900 per litre, NNPC retail outlets cut PMS prices to N865 in Lagos and N870 in Ogun.
MRS and Ardova, both Dangote partners, reduced prices to N865 and N875 per litre in Lagos and Ogun. As of yesterday, Heyden sold the product at N890; Fatgbems, N882; Akiavic, N894; Asharami, N895; Rainoil, N875; and NIPCO, N890.
The price variation extends across states, with the North, South-East, and South-South recording higher rates due to distance. On Wednesday, Economic Confidential had predicted that petrol prices would drop below N900 per litre after Dangote Refinery reduced its ex-depot rate from N850 to N820 per litre.
A statement signed by the Dangote Group Chief Branding and Communications Officer, Anthony Chiejina, confirmed the price cut. The company said that as part of its commitment to national development, it would ensure a consistent and uninterrupted supply of petroleum products.
Earlier, filling stations had raised pump prices to N900 and above despite a fall in crude prices last weekend. NNPC retail outlets sold petrol at N900 per litre in Lagos and Ogun last week, even as crude prices dropped from nearly $69 to $66 per barrel.
Dangote refinery partners, including Ardova and Heyden, also pushed prices above N900 per litre. Similar prices were displayed on Monday along the Lagos–Ibadan Motorway despite no significant change in crude prices or the exchange rate.
However, Dangote’s price reduction forced other marketers, including the NNPC, to cut pump prices. Before the Dangote refinery began petrol production last year, the NNPC was the sole determiner of fuel prices.
The NNPC, which was the sole petrol importer at the time due to fuel subsidies, seems to have ceded that role to the 650,000-barrel-per-day Dangote refinery, the only functional petrol-producing refinery as of the time of filing this report.
Petrol prices had surged to about N1,200 per litre last year when the NNPC completely removed subsidies, but the Dangote Refinery has since implemented repeated price cuts to bring prices to current levels. While many Nigerians welcomed the reductions, fuel marketers lamented the losses.
Meanwhile, some Nigerians insist that petrol prices should return to between N200 and N500 per litre, saying that is the only way they would truly feel the impact of the cuts.
“The prices should drop to between N200 and N500, and you’ll see the impact on virtually all sectors of the economy. Selling above N850 per litre is still high, and causing inflation to spike,” a Lagos resident, Favour Samson, stated
