By Okafor Joseph Afam, December 23, 2024
News

Petrol will now sell at N935 per litre nationwide, starting today, as announced by the Independent Petroleum Marketers Association of Nigeria (IPMAN). This significant reduction follows a newly implemented pricing and distribution arrangement spearheaded by the Dangote Refinery.

The arrangement includes a reduction in the refinery’s ex-depot price from N970 per litre to N899.50 per litre, a move designed to stabilize prices and ensure uniformity across the nation.

Speaking in Abuja on Sunday, IPMAN National President, Alhaji Maigandi Garima, applauded the initiative, describing it as a breakthrough for Nigeria’s fuel distribution system.

“This step by Dangote Refinery is a commendable effort toward stabilizing the market and ensuring availability of petrol in all regions. We are confident it will also reduce transportation costs for Nigerians during the festive season,” he said.

Uniform Pricing Nationwide
The Dangote Refinery has partnered with major distributors like MRS to ensure petrol is sold at N935 per litre nationwide. The initiative, already active in Lagos, will expand across the country from today.

In a statement, the refinery highlighted the benefits for marketers:
“The new arrangement allows marketers to pay a fixed ex-depot price of N899.50 per litre. Generous credit terms have also been introduced to ease the distribution process.”

Growing Competition and Price Reductions
Alhaji Garima emphasized that the ongoing competition in the downstream sector, driven by deregulation, has been key to the price reductions. He projected further decreases in petrol prices as more private refineries commence operations.

“Previously, petrol prices reached N2,000 per litre in some parts of the North and East due to reliance on imported fuel. Today, with local refineries operational, prices have stabilized. As more refineries, including those in Warri and Kaduna, resume production, we expect even lower prices,” he stated.

The crude-for-Naira swap deal, introduced earlier this year, was also lauded by the IPMAN president as a strategic move to foster economic growth and reduce dependency on foreign exchange for fuel imports.

NNPC Joins the Competition
In a related development, NNPC Ltd. has also adjusted its ex-depot price, reducing it from N1,020 per litre to N899 per litre. This move, analysts say, reflects growing competition in the deregulated market.

The price reductions mark a turning point for Nigeria’s petroleum sector, promising more affordable fuel and greater economic stability.