Two Refineries in Nigeria Resume Petrol Sale After Dangote Slashed Price
- Oil marketers have started lifting petroleum products from the Port Harcourt and Warri refineries
- The development was confirmed by the spokesman of PETROAN, who now expects competition to drive prices down
- Dangote Petroleum Refinery recently announced a reduction in petrol prices in response to global oil price changes
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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.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has announced that its members have commenced the lifting of Premium Motor Spirit (PMS), popularly known as petrol, from the Port Harcourt and Warri refineries.
Source: Getty Images
This was disclosed by Joseph Obele, spokesperson for PETROAN in a statement released over the weekend.
According to PETROAN, the two refineries, owned by the Nigerian National Petroleum Company Limited (NNPCL), are now operational and supplying petroleum products to their association.
The statement reads:
"PETROAN members are now loading petroleum products, including Dual-Purpose Kerosene, Automotive Gas Oil, and Premium Motor Spirits.
The resumption of these refineries has sparked intense competition, expected to drive down petroleum prices."
Vanguard reports that the refineries are seen as an important development in Nigeria's energy sector, promising to alleviate the longstanding challenges of fuel scarcity and price instability.
Obele noted:
"As Nigerians advocate for lower PMS prices, it is clear that competition is a crucial factor in triggering price reductions."
Furthermore, Obele pointed out the broader benefits of refinery operations, stating:
"The refineries has brought numerous benefits, including the eradication of adulterated diesel and kerosene from the market.
"This improvement is expected to enhance fuel quality and reliability across the country."
Speaking on the economic implications, Obele said:
"The refineries’ functionality has also contributed to a decrease in crude oil theft, which has hindered Nigeria’s ability to meet OPEC production targets."
Competition with Dangote refinery
NNPC will now look to compete with the Dangote refinery with cheaper pricing to attract more sales from the two refineries.
Legit.ng reported that the Dangote Petroleum Refinery reduced the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890.
The company said in a statement on Saturday that the price reduction is effective from Saturday, 1st February 2025.
The statement reads:
“This strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices.
“Dangote Petroleum Refinery firmly believes that this reduction from N950 to N890 will result in a meaningful decrease in the cost of petrol nationwide, thereby driving down the prices of goods and services, as well as the overall cost of living, with a positive ripple effect on various sectors of the economy."
NNPC releases new petrol prices
Legit.ng reported that the NNPC limited announced new petrol prices in Lagos and Abuja stations.
In Lagos and Abuja, retail filling stations owned by the Nigerian National Petroleum Company Limited (NNPC) have increased the pump price of petrol from N965 to N990.
The national oil company also hiked their prices in Lagos from N925 to N960 per litre.
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Source: Legit.ng
