Dangote Refinery has provided clarification on the recent reduction in pump prices of Premium Motor Spirit (PMS) at filling stations across Nigeria. The move comes amidst speculation that the price drop was a result of a government policy change. However, the refinery has stated that the reduction in pump price is a direct result of its own decrease in PMS prices, which was implemented on November 6.
According to a statement released by Dangote Refinery, the company reduced its PMS gantry price from N877 to N828 per liter, representing a 5.6% decrease, and its coastal price from N854 to N806 per liter. These changes were publicly announced and implemented before marketers adjusted their pump prices. The refinery emphasized that the reduction in pump prices is not linked to the suspension of the 15% import tariff by the Federal Government, which was approved by President Bola Ahmed Tinubu on October 21.
The clarification is significant as it sets the record straight on the factors influencing the reduction in pump prices. The refinery’s statement suggests that the price adjustment was a business decision, rather than a response to government policy. The reduction in PMS prices is expected to have a positive impact on consumers, who will benefit from lower fuel costs.
In recent weeks, there have been speculations about the factors driving the reduction in pump prices. The suspension of the 15% import tariff had been cited as a possible reason, but Dangote Refinery’s statement contradicts this claim. The company’s clarification provides insight into the dynamics of the petroleum industry and the factors that influence pricing decisions.
The development is also a reminder of the complexities of the petroleum industry, where pricing decisions are influenced by a range of factors, including production costs, market dynamics, and government policies. As the industry continues to evolve, it is essential to separate fact from speculation and to provide accurate information to stakeholders. By doing so, we can promote transparency and understanding of the factors that shape the industry.