Hope Rises for Cheaper Fuel Nationwide as Dangote's Rivals Set New Pump Price Target
- There are expectations for a petrol price drop in the coming days, following promises from marketers and oil companies
- The reduction in the landing cost of petrol has also raised hopes that filling stations will lower prices soon
- The petroleum market is now fully deregulated, with petrol pump prices determined by market forces
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.
Fuel prices in Nigeria are anticipated to reduce in the coming days as oil marketers and companies signal possible price cuts amid competition for market share.
The federal government has clearly stated that it will no longer set fuel pump prices and that market forces will determine product costs.
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Expectations for new fuel prices
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New fuel price: Oil marketers make demands to Dangote refinery after crashing prices by N80
In recent days, the market appears to have favoured Nigeria, with oil prices now at $75 per barrel and the Dangote Refinery confirming that its petrol prices range between N960 and N990.
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Additionally, reports of marketers promising to sell petrol at prices lower than those set by Dangote have raised hopes for new, more affordable fuel prices soon.
In a statement released on Monday, November 4, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) stated that the premium motor spirit (petrol) they plan to import will be cheaper than the current rates available in the country.
Joseph Obele, the national public relations officer, stated that PETROAN has incorporated a business unit to enable it to import petrol before December, Vanguard reports.
Part of the statement reads:
“PETROAN has concluded plans with her foreign refinery counterparts and financial partners to import the best quality of PMS and then sell far lesser than the present selling rate of PMS in Nigeria.
“We planned to enter the market before December 2024, pending the approval of our import permit license by the regulatory agency and access to foreign exchange from CBN at the the official rate."
Legit.ng also reported that Pinnacle Oil & Gas has expressed readiness to compete with Dangote petrol prices and assured of quality products.
NewsTelegraph also reports that fuel landing cost has dropped to N939.86 as of November 1, 2024, from N945.63/litre as of September 27.
The major Energies Marketers Association of Nigeria (MEMAN) disclosed the new prices.
New price list emerges in Lagos, Abuja
Legit.ng reported that due to the complete deregulation of the oil industry, Nigerians now purchase petrol at historically high costs, with pricing differing between cities and filling stations.
Filling stations also showcased their prices, which are not less than N1,000 per litre.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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