Dangote Petroleum Refinery has reduced its ex-depot price for Premium Motor Spirit (PMS) by N100, with the refinery now selling at N1,075.
The reduction from N1,175 marks the first downward adjustment after several increases recorded in recent days.
According to the refinery’s latest pricing template released on Tuesday, as seen on Petroleumprice.ng, the gantry price of petrol has been cut by N100 to N1,075 per litre.
What they are saying
The refinery disclosed that PMS supplied from the depot will now sell at N1,075, which is an 8.5% reduction from Monday’s price.
- In addition, the gantry price of Automotive Gas Oil, commonly known as diesel, has been reduced to N1,430 per litre, representing a N190 drop from the earlier price of N1,620 per litre.
Backstory
Nairametrics reported on Monday that Dangote Refinery raised the gantry price of Premium Motor Spirit to N1,175 per litre, marking the third upward adjustment within a week.
The price hike announced represented an increase of N180, or about 18.1 per cent, within three days.
- The development came after the refinery suspended petrol loading operations and restricted truck-out activities, which had fuelled speculation among market participants about an imminent price adjustment.
What the reduction means
With the new price of N1,075, marketers will still be buying above N1,100 per litre at filling stations, as retailers will add logistics costs to the product and determine their profit margins.
PMS pump prices have been selling close to N1,300 since yesterday. The latest reduction is expected to bring some relief.
The hike in PMS prices continues to have ripple effects across the economy. Transport fares have gone up, and the prices of certain goods and services have increased as well.
What you should know
Oil marketers have revealed that the pump price of petrol could have risen as high as N1,500 per litre by now if Nigeria had not improved domestic refining capacity, especially with the likes of Dangote Refinery, and was still importing most of its petroleum products.
- They had predicted that the pump price of petrol would rise to N1,200 per litre by Monday due to the ongoing Middle East crisis.
- They said the market is reacting to global crude oil prices, exchange rate pressure, and increasing logistics costs.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) had also warned that the pump price of petrol may hit N2,000 per litre amid the ongoing Middle East tension.
- PETROAN urged the Nigerian National Petroleum Company Limited (NNPCL) to urgently strengthen domestic refining capacity as a strategic step to shield Nigeria from the global petroleum market shocks.
The National President of PETROAN, Billy Gillis-Harry, made the call in Port Harcourt while delivering a keynote address titled “Deconstructing Energy Trilemma,” organised by the Department of Petroleum Economics and Policy Studies at Ignatius Ajuru University of Education.
