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Christmas: Respite for Nigerians as fuel pump prices crash nationwide

…PMS sells for N990, N935 across states

…As Dangote showers praises on Tinubu

By Seun Ibiyemi

As Christmas approaches, Nigerians are breathing a collective sigh of relief as fuel pump prices experience a significant drop across the nation.

The unexpected decline, attributed to a combination of oil price adjustments and strategic government interventions, comes as a welcome development during the typically high-demand festive season.

The reduction stands in stark contrast to the previous months’ record highs, which saw prices hovering around N1,200 to N1,300 per litre, contributing to inflation and economic strain.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the price of petrol will drop to N935 per litre by Monday, due to a new arrangement involving Dangote Refinery.

IPMAN explained that the price reduction was prompted by a reduction in Dangote Refinery’s fuel ex-depot price and a uniform pricing structure, enabling marketers to sell at N935 in their outlets nationwide.

In an interview with the press in Abuja on Sunday, IPMAN National President, Alhaji Maigandi Garima, lauded Dangote Refinery for this development. He explained that the refinery recently announced a 7.27% price reduction, lowering its ex-depot price from N970 per litre to N899.50 per litre, and offering favourable credit terms to marketers.

To ensure the price reduction reaches end consumers, Dangote Refinery has entered into a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre. This price cut, designed to alleviate transport costs during the festive period and beyond, has already been implemented in Lagos and will be extended nationwide from Monday.

“Dangote Refinery has introduced a new arrangement for loading and pricing, where marketers will pay a fixed ex-depot price of N899.50 per litre,” Garima said. “The refinery is running a programme to ensure fuel consumption across the country occurs at the same rate. We expect the new arrangement to start on Monday. We have already been loading from Dangote Refinery, and it is helping us during this festive period.”

Garima noted that previously, fuel was being loaded at N970 per litre at the Dangote Refinery, but due to the new arrangement, the price would drop to N935 by Monday.

He highlighted that the ongoing competition in the downstream sector, resulting from deregulation, was expected to drive continued reductions in fuel prices. “That is why we have been advocating for greater private sector involvement in the refinery business,” Garima said. “Very soon, more refineries will come online, and the country will experience further price reductions in the downstream sector.”

He recalled that during the 2023 festive season, fuel prices in the northern and eastern parts of the country reached as high as N2,000 per litre, due to the importation of fuel. He added that the highest price in these regions now would be N1,100, thanks to the domestic production of fuel by local refineries.

“Once the Warri and Kaduna refineries resume production, we will be able to buy products at even cheaper rates, which will be beneficial for the economy,” he said. Garima also commended the Naira-for-crude swap deal, calling it a positive development for the country’s economic growth.

The Nigerian National Petroleum Corporation (NNPC) Ltd. also announced a reduction in fuel ex-depot prices, slashing them from N1,020 to N899 per litre. This reduction reflects the response to deregulation and increased competition in the industry.

In related news, President of Dangote Industries Limited, Aliko Dangote, has praised President Bola Ahmed Tinubu for the positive impact of the crude-for-naira swap deal on Nigeria’s economy, which has contributed to the reduction in petroleum product prices across the nation.

Dangote announced that the price of Premium Motor Spirit (PMS) would be reduced from N970 to N899.50 per litre at Dangote Refinery’s loading gantry, while also offering favourable credit terms to marketers. “To ensure that this price reduction reaches the end consumer, we have partnered with MRS to sell petrol from their retail outlets nationwide at N935 per litre,” he said.

The revised price is already in effect in Lagos and will be rolled out nationwide starting Monday.

Dangote also called on other oil marketers, including NNPC Retail, to collaborate in ensuring that Nigerians benefit from affordable, high-quality petroleum products. “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will continue working with various players in the value chain to deliver high-quality petrol at lower prices. Our aim is to ensure that all Nigerians have ready access to quality petroleum products that are good for their vehicles, their health, and their wallets.”

The Federal Executive Council (FEC), led by President Tinubu, approved the crude-for-naira swap in September, allowing local refineries to purchase crude oil in naira and sell petroleum products locally in naira. The initiative, which began on October 1, has helped stabilise the naira and reduce pressure on the dollar.

Dangote expressed gratitude to Nigerians for their continued support and praised the government for creating an environment conducive to the growth of the domestic refining industry.

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