- The Nigerian National Petroleum Company Limited reduced fuel pump price to N860
- The price drop follows recent adjustments by Dangote Refinery
- Petroleum Products Retail Outlet Owners Association of Nigeria has lauded NNPCL and Dangote Refinery over reduction in fuel price
The Nigerian National Petroleum Company Limited (NNPCL) has adjusted fuel pump price across its retail outlets to N860 per litre.
Although there is no official communication from the NNPCL Retail on price reduction, some NNPCL retail stations in Lagos and Abuja adjusted their pumps to N860 and N865 per litre, down from N945 as of Sunday, March 2.
However, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, confirmed the development to The Punch, adding that the new price is yet to reflect on the portal
“It is true; NNPC is selling petrol at N860 in the filling stations though this has not been reflected on the portal. They told me they are working on updating the portal,” Fashola said.
Price drop follows adjustment by Dangote Refinery
The reduction in fuel pump price by NNPC comes days after the Dangote Refinery reduced its ex-depot petrol price from N890 to N825 per litre.
The price drop, which took effect on February 27, was the second time Dangote Refinery reduced fuel price in February, the first being a reduction from N950 to N890 per litre on February 1.
The company also promised N65 per litre refund to its key distribution partners, Ardova Plc (AP), Heyden, and MRS, who previously purchased petrol at higher rates before the recent price reduction.
The price drop by Dangote Refinery sets another price regime for the petrol market in Nigeria as marketers compete for market share.
Petrol importers face an average loss of N2.5 billion daily and N75 billion monthly following the petrol price reduction by Dangote Refinery.
PETROAN lauds NNPCL, Dangote Refinery over fuel price reduction
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has commended the NNPCL and Dangote Refinery for reducing the price of petrol, adding that the price reduction will help to alleviate the financial burden on Nigerians amidst rising inflation.
The National President of PETROAN, Dr Billy Gillis Harry, made the commendation in a statement on Monday, March 3, signed by the association’s national Public Relations Officer, Dr Joseph Obele.
“This price reduction will be a huge relief to many Nigerians struggling to make ends meet.
“The reduction in PMS price is expected to positively impact Nigerians in: Decreased transportation costs: With lower PMS prices, transportation costs will decrease, making it easier for people to commute and transport goods.
“Reduced food prices: Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food,” he said.
Gillis-Harry also lauded Dangote Refinery for agreeing to refund N65 to retail outlet owners who bought petrol at the old gantry price.
He said, “This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre.
“According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund. The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price.
“Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds.
“Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members.”
NNPCL, oil marketers consider eliminating petrol imports to focus on Dangote’s production
Meanwhile, TheRadar earlier reported that the Nigerian National Petroleum Company Limited (NNPCL) was in talks with major oil marketers and other stakeholders to devise a strategy aimed at eliminating petrol importation, with a strong focus on increasing the country’s reliance on the Dangote Refinery for domestic fuel supply.
A meeting was recently held by Mele Kyari, NNPCL’s Group Chief Executive Officer, alongside the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and included representatives from major oil marketing associations such as the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), and other key companies like 11 Plc, Matrix, and AA Rano.
