Nigeria’s petroleum marketers have announced that the price of Premium Motor Spirit (PMS), commonly known as petrol, may reduce to between ₦900 and ₦1,000 per litre by the Yuletide season.
This projection follows the intervention of the Dangote Refinery, which recently reduced its ex-depot petrol price.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), and Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared this development in separate interviews with Daily Post on Monday, November 26, 2024.
This comes after the Dangote Refinery on Sunday announced a ₦20 reduction in its ex-depot price, lowering it from ₦990 to ₦970 per litre.
The company attributed this price cut to its commitment to appreciating Nigerians for their continuous support.
The announcement aligns with a recent agreement between the refinery and Nigerian oil marketers on direct petrol purchases.
Gillis-Harry expressed optimism, stating that the reduction in ex-depot prices would significantly impact retail pump prices nationwide.
He emphasized that the Dangote Refinery’s action could lead to further reductions in petrol prices by the end of the year, depending on crude oil prices and the supply chain process.
“It is good that the Dangote Premium Motor Spirit price has come down. This will impact heavily on the price of petrol for Nigerians. Definitely, the pump price will be reduced going forward.
It is a good thing for players and Nigerians that the price of PMS is coming down. The price can even reduce further in the coming Yuletide.
I can’t tell the exact price at the moment until the product is transported to our members’ filling stations nationwide,” he said.
Similarly, Ukadike explained that the recent reduction would lead to noticeable decreases in pump prices across IPMAN members’ filling stations, depending on their location.
According to him, prices had already fallen from ₦1,200–₦1,300 per litre in recent weeks to ₦1,100–₦1,150 per litre. He added that the latest cut could further reduce prices by an additional ₦15 to ₦20.
“The reduction in the ex-depot prices of PMS at Dangote Refinery shows the market is now healthier. Instead of the price increasing, it is now decreasing.
Marketers have started reducing pump prices even before the Dangote price cut. By December 2024, Nigerians should expect the cheapest petrol prices to be between ₦900 and ₦1,000 per litre,” Ukadike stated.
In recent months, Nigerians have faced volatile petrol prices, which spiked to ₦1,060–₦1,150 per litre in October, up from ₦617 in August. However, the Nigerian National Petroleum Company Limited (NNPCL) has urged oil marketers to halt imports and focus on sourcing from the Dangote Refinery, marking a significant shift in the petroleum sector.
