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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