The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol prices will drop to N935 per litre starting Monday, following an agreement with the Dangote Petroleum Refinery. IPMAN’s National President, Maigandi Garima, explained that the reduction in the ex-depot price of petrol at the Dangote refinery, coupled with a uniform pricing arrangement, would allow marketers to sell at N935 per litre at their outlets nationwide, with an additional N36 cost for logistics.
“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k,” Garima stated. He added that the refinery was aiming to standardize fuel consumption rates across the country. Garima also highlighted that the price of petrol, which had previously been N970 per litre, would now decrease to N935 due to this new arrangement.
The association also revealed that more than 30,000 members would begin loading petrol from the Dangote Petroleum Refinery and the Port Harcourt Refining Company, following the reduction of the ex-depot price to N899 per litre.
Meanwhile, it was noted that the pump price of petrol had already decreased in some Lagos filling stations, where it dropped to between N950 and N980 per litre, including MRS, BOVAS, and NNPC stations. However, many other stations in the state continued to sell petrol for more than N1,000 per litre.
IPMAN assured that prices would continue to decrease and that the N935 per litre price would be implemented across more filling stations by Monday, in line with the new arrangement from Dangote refinery. Retail outlet owners under the Petroleum Products Retail Outlet Owners Association of Nigeria have also started registering with MRS filling stations to lift petrol at N935 per litre.
IPMAN’s National Publicity Officer, Chinedu Ukadike, and the PETROAN President, Billy Gillis-Harry, both shared updates on the development. The reduction in the ex-depot price and the price war between NNPCL and Dangote had intensified competition in Nigeria’s downstream sector. The NNPCL, in a surprising move, slashed petrol prices by 12 percent on Saturday, much to the relief of Nigerians and marketers.
Ukadike commented, “NNPCL has changed their price at their portal. It means that everyone who has access to that portal can be able to request and pay for products. Once you pay, you will be called to the depot to pick up your products.” He also emphasized that the reduced price was a positive outcome of the deregulated oil sector. “When there are multiple sources of petroleum products, there will be production and pricing competition. That interplay of pricing has come to the centre stage, and it is now to the advantage of the commuters who wish that this petroleum product will be sold at a lesser price.”
He further explained that the competition between NNPCL and Dangote would be beneficial for Nigerians, as it would help determine the true cost of petrol production and the expenses involved in logistics. Ukadike also noted that the price reduction would allow marketers to pick up larger volumes of petrol, which would ultimately benefit consumers by ensuring a more stable supply.
He assured Nigerians that filling stations owned by IPMAN members would remain open throughout the festive season to prevent artificial scarcity. Meanwhile, the PETROAN president mentioned that their members were still waiting for the start of product disbursement from the Dangote and Port Harcourt refineries. He highlighted that the smooth commencement of product lifting would help accelerate the price reduction nationwide.
The Dangote Refinery has recently reported that it is operating at 85 percent capacity and is set to deliver European-standard products by January. Edwin Devakumar, head of the refinery, stated, “We have gone up to 550,000 bpd, that is 85 percent capacity in crude distillation.” The refinery, which has the capacity to process 650,000 barrels per day, aims to compete with European refiners but has faced challenges in securing enough crude locally.
