Dangote Refinery teams up with MRS to offer PMS at N935 per litre. In response to ongoing competition in the downstream sector, the Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS) by 12% to ₦899 per litre, down from ₦1,020. Dr. Billy Gillis Hary, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that this price applies to Lagos, while Warri, Oghara, Port Harcourt, and Calabar will see an ex-depot price of ₦970.
Dr. Hary welcomed the reduction, stating it reflects NNPCL’s commitment to making fuel more affordable and will benefit Nigerians by lowering transportation costs and increasing disposable income. He emphasized that the decrease in PMS prices will stimulate economic growth and improve the cost of living for citizens.
Dr. Hary praised Dangote Refinery for its recent price reduction, noting it has contributed to increased competition in the downstream sector. He also mentioned that a report from PETROAN’s technical pricing team analyzed the advantages and disadvantages of competitive pricing.
He stated that the report highlighted how competitive pricing enables companies to gain an advantage through strategic price setting. This strategy helps businesses assess their market position, attract new customers, and increase sales.
The report cautions that competitive pricing may compromise product quality, prompting PETROAN to urge the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce quality assurance standards.
PETROAN’s zonal leadership and state Executive Councils across Nigeria expressed hope that the recent price reduction by NNPC will provide relief to consumers at retail outlets nationwide. They believe this price drop will positively impact the economy by lowering transportation costs, enhancing economic activity, and improving living standards.
Eastern zone Zonal Chairman, High Chief Sunny Nkpe, affirmed that as the price reduction takes effect, PETROAN and its state councils will monitor the situation to ensure the benefits reach end-users and maintain stability in the downstream sector.
Dr. Joseph Obele, National Public Relations Officer of PETROAN, remains hopeful that PMS prices will further decline before the end of January 2025, influenced by the global drop in crude oil prices and the naira’s recent appreciation against the dollar.
In related news, Aliko Dangote, President of Dangote Industries Limited, praised President Bola Ahmed Tinubu for the positive effects of the naira-for-crude swap deal on Nigeria’s economy, which has contributed to lower petroleum product prices. Recently, Dangote reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its refinery and offered favorable credit terms to marketers. Additionally, Dangote’s refinery is partnering with MRS to sell PMS at N935 per liter.
Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group, announced that Dangote has partnered with MRS to sell petrol at N935 per liter, which has begun in Lagos and will be rolled out nationwide starting Monday.
He urged other oil marketers to collaborate with Dangote Petroleum Refinery, emphasizing that the refinery aims to benefit Nigerians by providing high-quality petrol at affordable prices. The goal is to ensure all Nigerians have easy access to quality petroleum products that are beneficial for their vehicles, health, and finances.
As competition intensifies among key players in the sector, operators anticipate more dynamic changes in Nigeria’s petroleum downstream market.