google.com, pub-3998556743903564, DIRECT, f08c47fec0942fa0 Dangote Refinery Reduces Petrol Price For Marketers

Dangote Refinery Reduces Petrol Price For Marketers

 

The Dangote Petroleum Refinery has announced a reduction in the price of its Premium Motor Spirit, lowering it from N990 per litre to N970 per litre. This adjustment, aimed at appreciating Nigerians, was disclosed in a statement by the Group Chief Branding and Communications Officer of the Dangote Group, Anthony Chiejina.

"As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a reality. It also serves to thank the government for its support in encouraging domestic enterprise for our collective well-being," the statement said.

Chiejina assured Nigerians of the refinery’s commitment to providing high-quality, environmentally friendly products while ramping up production to meet and exceed domestic fuel consumption needs.

Price Trends and Market Dynamics

Recent statements from the Major Energies Marketers Association of Nigeria indicate that the landing cost of imported petrol is now N971 per litre. Independent and major marketers have confirmed that pump prices are decreasing in many parts of the country, driven by increased competition following the deregulation of the downstream sector.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, noted that agreements with Dangote are already lowering prices. "Our collaboration with Dangote is significantly pushing down the cost of refined products, with prices dropping by N10 to N15 due to direct transactions with the producer," he said.

An oil marketer confirmed the downward trend in prices, attributing it to deregulation and increased competition. "The market is responding to supply and demand dynamics, and prices are becoming more competitive," the marketer stated.

Agreements and Market Impact

Reports suggest that the Federal Government and the Nigerian National Petroleum Company Limited have reached an agreement with Dangote Refinery for the supply of 28 million litres of petrol daily to the domestic market. This move is expected to prioritize local consumption over exports, stabilizing the market and reducing reliance on imports.

PETROAN praised the resolution, highlighting the benefits of deregulation and collaboration among stakeholders. "This development is a significant step toward ensuring stable petroleum product prices, fostering transparent communication, and improving the Nigerian economy," said Billy Harry, PETROAN’s National President.

Disputes Over Resolutions

Despite these claims, the NNPC and Dangote Group have denied the existence of such a resolution. Olufemi Soneye, NNPC Chief Communications Officer, dismissed the reported agreement as untrue. Similarly, Anthony Chiejina of Dangote Group denied knowledge of the 28 million litres per day supply arrangement.

In contrast, PETROAN maintains that the agreement is factual and aims to address the challenges facing the downstream sector, ensuring availability and stability in the market.

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