The recent drop in the price of Premium Motor Spirit (PMS), commonly known as petrol, has been attributed to heightened competition between Nigeria’s two major refineries—Dangote Refinery and NNPC Limited. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the rivalry between these local refineries is contributing to a reduction in pump prices across the country.
In response to falling ex-depot prices from both Dangote and the Port Harcourt Refinery, retail outlets have started reducing their pump prices. For instance, NNPC Retail lowered its price from N1,030 to N965 per litre, while other major retailers such as AA Rano and AYM Sharfa dropped their prices from N1,070 to N1,020 per litre. However, Conoil has yet to adjust its price, maintaining N1,090 per litre, the same price as in November.
Chief Chinedu Ukadike, Public Relations Officer for IPMAN, explained that the competition between Dangote and NNPC, along with a steady supply of products, has led to lower prices. “It is a good development for independent marketers and for consumers. Normally, prices rise due to increased demand during this period, but we are seeing the opposite right now,” Ukadike said. He added that the launch of the Warri and Kaduna refineries next year would intensify the price competition.
Independent marketers have benefitted from increased product availability and improved turnover. Ukadike noted that when pump prices were around N1,300 per litre, many marketers sold fewer than 5,000 litres daily. However, with the current price reductions, sales have improved. Additionally, marketers can now purchase directly from both refineries. NNPC has opened its portal for bulk purchase, and Dangote has increased its volume for bulk purchase eligibility from 10 million to 2 million litres, making it more accessible for independent marketers.
The opening of Dangote and Port Harcourt refineries is expected to further impact Nigeria’s foreign exchange rate in 2025, as the country will no longer rely on imports for petroleum products. Both refineries have a combined processing capacity of 620,000 barrels per day (bpd)—560,000 bpd from Port Harcourt and 60,000 bpd from Dangote.
Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed optimism that these refineries would ease the pressure on Nigeria’s foreign exchange market by reducing the need for petroleum imports.
With the new ex-depot prices at N899 per litre from both NNPCL and Dangote Refinery, oil marketers have already begun adjusting their pump prices in line with the revised rates.
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