Why petrol price will drop to N935 per litre nationwide from Monday – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol will be sold at N935 per litre nationwide starting Monday, following a new pricing framework from Dangote Refinery.

Maigandi Garima, IPMAN’s National President, disclosed this during an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

He commended the Dangote Refinery for its initiative to lower the ex-depot fuel price and ensure uniform pricing across the country.

Dangote Refinery recently reduced its fuel ex-depot price by 7.27%, bringing it down from N970 per litre to N899.50 per litre. The company also introduced favorable credit terms for marketers and partnered with MRS to ensure petrol is sold at N935 per litre at retail outlets nationwide.

READ ALSO :Dangote strikes deal with MRS to sell petrol at N935/litre nationwide

According to Garima, this price reduction aims to alleviate transport costs for Nigerians during the festive period and beyond. “Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50. We are expecting the new arrangement to kick-start on Monday,” he said.

Garima also noted that the refinery’s current ex-depot price represents a significant drop from the previous N970 per litre. He credited the deregulation of the downstream oil sector for the competitive pricing now being experienced.

“This is why we’ve always advocated for private sector participation in the refinery business. With more refineries coming on stream soon, we anticipate further price reductions,” he said.

He highlighted that during the 2023 festive season, fuel prices reached as high as N2,000 per litre in some northern and eastern parts of the country due to reliance on imported fuel. Currently, the highest price in those regions is around N1,100, thanks to local refinery operations.

Garima expressed optimism that once the Warri and Kaduna refineries resume operations, fuel prices will become even more affordable, benefiting the economy.

He also lauded the crude-for-naira swap deal as a positive step for economic growth, adding that the NNPC Ltd. recently reduced its ex-depot price from N1,020 to N899.

The ongoing price adjustments reflect the impact of deregulation and heightened competition in the downstream oil sector.