Importers Jittery As Dangote Refinery Slashes Pump Price To N899.50/litre

NSE ANTHONY-UKODangote Petroleum Refinery has slashed the price of Premium Motor Spirit (PMS) to N899.50 per litre, down from N970, in a bid to provide relief to Nigerians during the holiday season.

This reduction, announced by spokesperson Anthony Chiejina, aims to ease transportation costs as festive travel peaks.

However, this year’s announcement has raised concerns among PMS importers who may struggle to compete with Dangote’s current lower prices.

The landing cost of petrol in Nigeria has recently decreased to N900.28 per litre, down from approximately N936.75 per litre, marking a 3.62 per cent reduction. This decline reflects fluctuations in global oil prices and exchange rates, with crude oil prices currently around $73.52 per barrel and the exchange rate at N1,533 per dollar.

Despite the lower landing cost, the retail price for petrol remains significantly higher, ranging between N1,060 and N1,200 per litre at various filling stations across the country.

“To ease transportation costs this holiday season, Dangote Refinery is reducing the price of PMS to N899.50 per litre at our truck loading gantry or SPM. Additionally, for every litre purchased with cash, consumers can buy an extra litre on credit, secured by a bank guarantee from Access Bank, First Bank, or Zenith Bank,” Chiejina.

In a notable offer, Dangote refinery said consumers can purchase an additional litre on credit for every litre bought with cash, contingent upon bank guarantees from Access Bank, First Bank, or Zenith Bank. This initiative is part of Dangote’s strategy to enhance fuel accessibility while combating reliance on substandard imported fuels.

The refinery’s price cut comes just days before Christmas, a period historically marked by fuel shortages in Nigeria. The company’s commitment to providing high-quality fuel is seen as a pivotal move in stabilising the local market and reducing health risks associated with inferior products.

As the holiday season approaches, many Nigerians welcome this price adjustment, hoping it will alleviate some of the financial burdens associated with travel and logistics.

Recall that in November, the refinery lowered its Premium Motor Spirit (PMS) price to N970 per litre, down from N990. At the time, Dangote Refinery provided marketers with a N20 per litre discount to ease distribution costs.

The refinery’s latest price adjustment comes at a critical time for Nigeria’s energy sector, as stakeholders continue to navigate challenges surrounding fuel availability and affordability.

Market observers anticipate that the price reduction will alleviate some of the cost pressures on independent marketers and, by extension, consumers.