Dangote, NNPC In Price War, Consumers Yearn For More
By Frederick Wright
The prevailing competition in fuel refining appears to be bringing succour to petroleum products consumers across the country, as the major refining firms Dangote Petroleum Refinery & Petrochemicals and the Nigerian National Petroleum Company Limited (NNPC), engage in price slash game in a bid to dominate the market.
The marketing strategy, popularly referred to as “price war” by stakeholders, is forcing the prices of Premium Motor Spirit (PMS) down at the filling stations.
Already, some marketer who lift products from Dangote Refinery are now selling between N860- N870at the filling stations, depending on the location, while the NNPC is selling at N860 per liter at their retail outlets across the country.
Infact, MRS Filling Stations, with their strategic partnership with Dangote, is now selling at N935 per liter.
The company said in a statement: “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it.”
The shoulder-rubbing price began last week when Dangote Refinery said it has crashed its gantry price from N890 per litre to N825 per litre. Although, it claimed it was a Ramadan gift.
Infact, Dangote was ready to absorb N16 billion loss by refunding N65/litre to marketers who had ordered for products at the earlier price.
Few days later (Monday), NNPC also announced a reduction on its pump price to ₦860 per litre across its stations.
As this goes on, the consumers are yearning for more reduction in prices of petroleum products, claiming that the percentage of reduction is still far from the percentage increase which was experienced at the declaration of subsidy removal.
The National President, Petroleum Retailers Outlet Owners Association of Nigeria, (PETROAN), Dr. Billy Gillis Harry, recently said that the development will be a huge relief to Nigerians.
He said: “The reduction in PMS price is expected to positively impact Nigerians in decreased transportation costs. With lower PMS prices, transportation costs will decrease, making it easier for people to commute and transport goods.
“It will reduce food prices. Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food”.
He lauded Dangote Refinery for agreeing to refund N65 to retail outlet owners affected by the price reduction.
Speaking on the situation, the Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, said that the downward trend of petrol price will continue until June 2025.
Rewane, while speaking on Channels Television, said: “Generally, between now and June, we will see prices begin to decline. But after June, as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilization,” he stated.
