...Dangote Refinery Reduces to ₦899.5
In a sign of stability in the downstream sector, the Major Energy Marketers Association of Nigeria, MEMAN, has said that the landing cost of Premium Motor Spirit, PMS, also known as petrol declined marginally to N970 in December 2024, from N971 per litre in November 2024.
This comes against the backdrop of a similar drop in the crude oil price to $73.77 per barrel, yesterday, from $74 per barrel last week.
However, in its daily energy bulletin, MEMAN, said that the latest landing cost was based on N1,533.57/$ and $73.91 per barrel of crude oil (Brent).
However, it also stated: “International petroleum product pricing is experiencing significant volatility due to geopolitical and economic factors, including events in the Middle East, China market dynamics, and the market of the recent USA elections outcome.
“The foreign exchange rate is also experiencing volatility. Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day.”
However, the retail price of petrol remains unchanged at N1,025 per litre in Lagos.
The Chairman of the Lagos State Chapter of the association, Ehimen Joseph, said: “The price of petrol is determined by market forces under a deregulated market regime. A drop in price is possible.”
Similarly, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, had also said, “The price of petrol cannot just drop spontaneously, as marketers have large stocks. Until it is finished, there will be no reduction.
“But the fall in price is possible over time based on market forces and foreign exchange volatility. In other words, fuel price reduction cannot be spontaneous. The market will definitely have a lag, that will be sustained within a month or two pending marketer’s depleted stocks and sustainable foreign exchange.”
Meanwhile, Dangote Petroleum Refinery has announced a reduction in the ex-depot price of its premium motor spirit (PMS), commonly known as petrol, to ₦899.50 per litre.
Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Group, made this announcement in a statement on Thursday.
"Dangote Petroleum Refinery has reduced the price of its Premium Motor Spirit (PMS) product to below ₦900 per litre to provide much-needed relief for Nigerians ahead of the holiday season,” Chiejina stated.
The privately-owned refinery, Africa’s first of its kind, had previously reduced the price to ₦970 per litre on November 24. The new price adjustment is part of efforts to ease transportation costs during the festive period.
In addition to the price reduction, the refinery has introduced a special offer for consumers. For every litre of petrol purchased with cash, customers will be allowed to buy an additional litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.
“To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at ₦899.50 per litre at our truck loading gantry or Single Point Mooring (SPM) facility,” Chiejina said.
Chiejina emphasized the refinery’s dedication to providing Nigerians with high-quality petroleum products at competitive prices, ensuring they are environmentally and engine-friendly.
He also highlighted the significant impact of the refinery’s operations on the Nigerian market, marking the end of the country being a dumping ground for substandard and blended imported fuel products.
These low-quality imports have historically posed risks to human health, machinery, and the environment.
The reduction in petrol prices and the introduction of innovative consumer incentives signal Dangote Refinery’s commitment to easing the financial burden on Nigerians during the holiday season while setting new standards for product quality and service delivery.
