- Filling stations across Nigeria have reduced petrol prices after Dangote Refinery lowered its ex-depot price to N1,075 per litre
- In Abuja, several marketers, including AA Rano, Ranoil and NIPCO, now sell petrol for between N1,205 and N1,240 per litre
- Despite the latest reductions, pump prices remain above N1,000 per litre, which was the level before the rise in global oil prices
Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.
Several filling stations across Nigeria have started reducing the pump price of petrol following Dangote Refinery’s latest cut in its ex-depot price.
A market survey conducted on Saturday in Abuja and neighbouring communities revealed that major independent marketers, including AA Rano, Ranoil and the Nigerian Independent Petroleum Company (NIPCO), have revised their prices downward.
Source: Getty Images
The affected stations now sell Premium Motor Spirit (PMS), popularly known as petrol, at between N1,205 and N1,240 per litre, compared with the previous average price of about N1,300 per litre.
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The latest price adjustment comes just two days after Dangote Refinery reduced its gantry price from N1,120 to N1,075 per litre, citing the decline in international crude oil prices.
At the time of the adjustment, West Texas Intermediate (WTI) crude traded at about $68 per barrel, while Brent crude hovered around $72 per barrel, Daily Post reported.
Petrol prices remain above N1,000 despite reductions
The refinery’s latest move has continued to influence the downstream petroleum market, with marketers gradually passing on the lower costs to consumers.
Earlier, MRS Filling Stations, a key distributor of Dangote Refinery products, reduced its pump price in Abuja to N1,191 per litre.
The Nigerian National Petroleum Company Limited (NNPCL) also adjusted its retail price to N1,210 per litre in the Federal Capital Territory.
Source: Getty Images
Although motorists are beginning to benefit from the latest round of price cuts, petrol prices remain above N1,000 per litre.
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The current rates are still significantly higher than the prices recorded before the escalation of geopolitical tensions in the Middle East, which contributed to rising global crude oil prices and higher fuel costs in Nigeria.
Dangote explains delay in bigger petrol price cuts
Dangote Refinery has explained why petrol prices in Nigeria do not immediately reflect declines in international crude oil prices
According to the company, crude oil is typically purchased weeks or even months before refining under commercial agreements linked to monthly average pricing, rather than prevailing spot prices.
It explained that most of its crude is acquired using the Dated Brent pricing system, with additional expenses such as market premiums, freight charges and logistics significantly increasing the final landed cost.
As a result, petroleum products currently leaving the refinery are largely produced from inventories bought when crude prices were considerably higher than current market levels.
Marketers explains obstacles to petrol price cuts
Meanwhile, PETROAN says petrol prices cannot be reduced immediately because most filling stations are still selling fuel bought at higher prices.
The association said marketers need to recover their costs, deal with expensive loans, and make enough profit to keep their businesses running.
PETROAN also called for an energy bank with low-interest loans and urged the establishment of more local refineries to lower fuel prices.
Source: Legit.ng