Competition between Dangote, NNPC, reason for petrol price drop — IPMAN
Independent Petroleum Marketers Association of Nigeria, IPMAN, has attributed the fierce competition between Nigeria’s two refineries owned by Dangote and NNPC Limited for the recent drop in the pump price of premium motor spirit, PMS, also known as petrol.
Checks by showed that most petrol retail outlets have reduced their pump prices in response to a drop in ex-depot prices by Dangote Refinery and the Port Harcourt Refinery.
Findings showed that while NNPC Retail reduced its price from N1,030 to N965 per litre, other retailers, such as AA Rano and AYM Sharfa, dropped their pump price from N1,070 to N1,020 per litre.
However, despite these reductions, it was observed that pump price at Conoil remained at N1,090 per litre, the same as it was in November.
Speaking to journalists, Public Relations Officer, IPMAN, Chief Chinedu Ukadike, said competition between the local refineries and the smooth flow of the product have resulted in the reduction in prices.
He said: “It is a good development for independent marketers and for consumers too. Now, because of increased demand, price normally goes up during this period but right now the opposite is the case.
“Availability has been taken care of and we are now seeing price war among the gladiators, NNPC and Dangote.
“By next year when the Warri and Kaduna refineries are expected to come onstream, things will even be more interesting.”
Ukadike noted that independent marketers were now able to buy directly from both refineries because “there is a slight increase in turnover. When the price was around N1,300/litre most of our members barely sold 5,000 litres daily but we are doing far better than this.
“We are also now able to get products directly. NNPC portal is open now for marketers to take as much product as they want. Dangote has also heeded our call and reduced the volume for bulk purchase eligibility.
“Initially it was limited to 10 million litres but now they sell at two million litres which is about N2 billion. This is more bearable for independent marketers who are now able to come together to place orders for the product.’’
There were indications that the coming on stream of the Port Harcourt Refinery and Dangote Petroleum Refinery would impact Nigeria’s foreign exchange rate in 2025.
The old Port Harcourt refinery and Dangote Petroleum refinery have the capacity to process 60,000 bpd and 650,000 bpd of crude oil respectively.
Before the coming on stream of the two refineries, Nigeria used to depend on the international market for its petroleum products.
However, Dr. Muda Yusuf, the Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed optimism in his outlook yesterday, stating: “The import substitution effect of the Dangote and Port Harcourt refineries will ease demand pressure on the forex market.”
Meanwhile, checks indicated that oil marketers continued to adjust pump prices following the provision of new ex-depot prices by both NNPCL and Dangote Refinery at N899 per litre and N899.50 per litre, respectively, last week.
Further checks showed that both NNPCL and MRS filling stations involved in marketing Dangote Petroleum Refinery have started adjusting the pump prices.
