Nigerian petroleum products marketers have announced plans to reduce the price of premium motor spirit nationwide, with a target price of near N739 per liter. According to the Independent Petroleum Marketers Association of Nigeria, its members are expected to receive direct fuel sales from Dangote Refinery at N699 per liter starting in January 2025. This move is part of an ongoing price war in the country’s oil downstream sector.
The development comes after the Nigerian National Petroleum Company Limited reduced its petrol price to N815 per liter across its retail outlets in Abuja. However, the new price remains N76 higher compared to Dangote Refinery-backed MRS filling stations, which currently sell petrol at N739 per liter. The price difference has resulted in a huge price gap between Dangote-backed MRS and other filling stations, including NNPCL.
At the end of last year, Dangote Refinery announced a significant drop in petrol prices, setting the tone for a price war among major players in the new year. Currently, fuel prices vary across filling stations, ranging from N739 to N900 per liter. Despite the lower prices offered by some stations, the majority of Nigerians have yet to benefit from cheaper fuel prices nationwide.
To address this issue, the Independent Petroleum Marketers Association of Nigeria plans to begin dispensing petrol at a maximum price of N750 in January, once Dangote Refinery commences direct sales to its members. The association’s president, Abubakar Maigandi, stated that the direct supply from Dangote Refinery will help reduce prices and alleviate queues at filling stations. With the promised direct delivery, marketers are expected to buy and discharge petrol at a lower price, ultimately benefiting consumers.
The price reduction is a significant development in Nigeria’s oil downstream sector, where fuel prices have been a subject of concern for consumers. As the market continues to evolve, it remains to be seen how the price war will unfold and whether the majority of Nigerians will finally benefit from cheaper fuel prices. The move by the Independent Petroleum Marketers Association of Nigeria and Dangote Refinery is expected to have a positive impact on the sector, with potential long-term effects on the country’s economy and consumers.
