New Petrol Prices Emerge as Marketers Explain Reason for New Cost
- Independent marketers have attributed the intense competition between Dangote and Port Harcourt refineries to the drop in petrol price
- As of December 29, 2024, petrol stations have adjusted their prices due to the drop in ex-depot prices by the two refineries
- Experts say petrol production by the two refineries has eased pressure on the FX market and might lead to an improved naira rate
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the recent drop in petrol prices to the intense competition between Dangote and Port Harcourt refineries.
Findings show that as of December 29, 2024, most petrol stations have reduced their pump prices due to the drop in ex-depot prices in the two refineries.
Source: Getty Images
Filling stations reduce petrol further
According to reports, while NNPC Retail reduced its price from N1,030 to N965 per litre, other marketers reduced their prices from N1,070 to N1,020.
However, some petrol stations and marketers such as Conoil have continued to sell petrol at N1,090 per litre, the same price in November,
Vanguard reports that the IPMAN’s public relations officer, Chinedu Ukadike, disclosed that competition among local refineries and product smooth flow have led to price reduction.
According to Ukadike, there is an improvement in demand due to the price war between the two refineries.
He stated that prices will reduce further in 2025 when the Warri and Kaduna refineries begin operation.
The IPMAN spokesman said marketers can now freely and easily purchase products in NNPC and Dangote depots without restrictions.
Nigerian refineries’ production lifts pressure on the naira
Findings reveal that the newly refurbished Port Harcourt and Dangote refineries would impact Nigeria’s FX rate in the coming year.
Nigerian now has a combined refined capacity of 560,000 barrels per day with the Dangote and Port Harcourt refineries.
Muda Yusuf, the Director and CEO of the Centre for the Promotion of Private Enterprise (CPPC), expressed hope, saying that the import substitution effect of the two refineries has eased demand pressure on the FX market.
Also, checks reveal that oil marketers have continued to adjust petrol prices downward, including Dangote, which now sells petrol at N899, while MRS Oil has commenced the enforcement of N935 petrol prices in its retail outlets.
Experts explain why petrol prices are dropping
Legit.ng reported a growing rivalry in the downstream petroleum industry as Nigeria's two functional refineries continued to pump petroleum products.
The NNPC and Dangote Refinery dropped petrol prices, fuelling competition in the market, which has also led to a significant drop in prices.
Dangote refinery reduced petrol prices to meet market demands and ease Nigerians' transportation costs.
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Source: Legit.ng
