Marketers project new fuel prices, say it may sell for N950/litre in Lagos

Independent oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have forecasted a reduction in the retail price of Premium Motor Spirit (PMS), commonly known as petrol, to N950 per litre in Lagos.

In Abuja, the price is expected to reach N990 per litre due to location-specific factors such as logistics.

Chinedu Ukadike, IPMAN’s National Publicity Officer, shared this projection during an interview. He noted, “Once there is a price reduction, it will trickle down. There will be a change to the pump price. It will be less than N1,000. But the difference will be determined by location. It may be N950 in Lagos and possibly N990 in Abuja. Logistics will play a key role. Remember that the price of diesel hasn’t reduced and that is what we put in our tankers.”

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This adjustment follows the Dangote Petroleum Refinery’s decision to lower its ex-depot price to N899.50 per litre, marking the second reduction in one month. This new price represents a seven percent decrease from the previously adjusted N970 per litre announced on November 24.

Earlier, Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, disclosed a special holiday discount on petrol prices. He stated, “From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.”

The refinery introduced a tiered pricing system: N899.50 per litre for two million litres with a 15-day bank guarantee and N895 per litre for 10 million litres under similar terms. Chiejina emphasized that this initiative aims to provide financial relief during the festive season while ensuring the availability of premium quality products.

Impact on Consumers and Market Players
IPMAN Chairman Abubakar Maigandi described the price reduction as a “welcome development” during an interview with Arise TV. He stated, “What Dangote has done is what we have been expecting. My marketers are very happy about the reduction… We have been telling Nigerians to exercise patience; we knew the price would drop, and we all are seeing it now little by little.”

Maigandi assured that retail prices would be adjusted to benefit consumers, adding that reduced transportation costs would positively impact economic activities.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also praised the reduction. Dr. Billy Gillis-Harry, PETROAN’s National President, stated, “The price reduction will alleviate the suffering of Nigerians and reduce the cost of living and transportation during this festive period.”

NNPCL and Supply Challenges
Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) has struggled to meet its crude oil supply obligations to the Dangote Refinery, delivering only 202,000 barrels per day in December, short of the agreed 385,000 barrels. Analysts expect the refinery’s growing operations to impact West African crude trade flows by 2025.

While Dangote Refinery has primarily relied on Nigerian crude, recent tenders suggest plans to diversify its crude slate, potentially including Angolan heavy and medium sweet grades. Market observers believe such adjustments could further stabilize Nigeria’s downstream sector and enhance fuel availability.

With the festive season underway, stakeholders remain optimistic that the reductions will ease the financial burden on Nigerians while paving the way for more competitive fuel pricing.