Rewane Explains How Nigerians Will Benefit From Dangote, NNPC Fuel Price War
- The Dangote Refinery and NNPC Limited are currently engaged in a price war as Nigeria enters the deregulation era
- After Dangote slashed its petrol prices for partnered filling stations, NNPC Limited followed suit days later by reducing its prices
- The price of petrol at filling stations nationwide now averages between N860 per litre and N890, down from above N945
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bismarck Rewane, managing director of Financial Derivatives Company, says Nigerians will gain from the ongoing petrol price competition between Dangote Petroluem Refinery and the Nigeria National Petroleum Corporation Limited (NNPC).
Source: Getty Images
Speaking on Channels Television, Rewane said he is expecting a further decline in fuel prices until June 2025
He noted that the downward trend in petrol prices will provide a boost to economic stability.
Rewane explained:
"In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be.
"But, at the end of the day, between now and June, the price leadership will be firmly established."
Speaking further, the economist attributed Dangote Refinery's decision to lower its petrol price to increased production cost efficiency and other related factors.
Dangote, NNPC price war
Legit.ng recently reported that retail outlets of NNPC have adjusted petrol pump prices from N945 per litre to N860 per litre.
While there has been no official communication from NNPC, several stations in Lagos have already implemented the new pricing structure.
This adjustment came after Dangote Refinery decided to reduce its ex-depot petrol price from N890 to N825 per litre.
This marks the second reduction this year and the third within two months.
To ensure Nigerians benefit from the reduction, Dangote Refinery has partnered with four oil marketers to sell petrol at lower prices.
In Lagos, Dangote's partners are offering fuel at MRS (N860 per litre), AP (N865 per litre), Heyden (N865 per litre), and Optima (N865 per litre).
Dangote Refinery urged Nigerians to report and request receipts if they purchase above the advertised prices set by its partners.
The statement reads:
“Dangote refinery, in its effort to ensure good quality and affordable fuel for Nigerians, is working with its partners to make this price accessible.
"Consumers who purchase fuel above the advertised rate at any of its key partners (Ardova Plc (AP), Heyden, or MRS) anywhere in Nigeria are encouraged to report to Dangote refinery with their receipts for a full refund of the excess amount."
Nigerians react as Dangote names 3 stations
Legit.ng earlier reported that Nigerians reacted to the decision by the Dangote Petroleum Refinery to slash petrol prices by N65.
The refinery explains that the reduction, which is the second in February, is to provide succour during the Ramadan season.
Three stations will be selling Dangote petrol at the new prices, and one has already notified customers of the new prices.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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