Hope Rises for Cheaper Fuel Nationwide as Dangote's Rivals Set New Pump Price Target

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.

Fuel prices in Nigeria set to change again
Fuel prices are not determined by market forces Photo credit: Bloomberg/contributor
Source: Getty Images

Expectations for new fuel prices

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New fuel price: Oil marketers to meet Dangote 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.

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:

Read also

“Price War”: Marketers insist on crashing Dangote’s petrol price below N900 per litre

“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.

Read also

Again, Dangote Refinery alerts Nigerians over import of inferior petroleum products

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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Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.