The Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890 per litre. The price adjustment, which took effect on Saturday night, aims to align with global market trends and offer relief to Nigerian consumers.

According to Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, the decision follows recent declines in international crude oil prices. The company urged fuel marketers to ensure the price reduction benefits consumers across the country.

However, many petroleum marketers have expressed concerns over the sudden price slash. Some who had purchased fuel at the previous rate of N950 per litre just hours before the announcement now face losses worth millions of naira. They will be forced to sell at a lower price to remain competitive.

Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged both the positive and negative effects of the price cut. He explained that marketers must adapt to the deregulated market, emphasizing the need for careful planning when purchasing fuel.

Industry stakeholders believe the price reduction is a response to pressure from fuel importers who argued that imported petrol was becoming cheaper than locally refined products. Dangote’s move is seen as a strategy to stay competitive in the market.

Meanwhile, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), welcomed the reduction, stating that it would ease the financial burden on Nigerians. He noted that lower fuel prices could lead to reduced transportation costs and an overall decrease in the cost of living.

With the new pricing trend, experts predict that the Nigerian National Petroleum Company Limited (NNPC) and other suppliers may also lower their prices to remain competitive. The impact of this reduction is expected to ripple through various sectors of the economy, benefiting both businesses and consumers.

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