Petrol prices are expected to drop across the country in the coming days following a fresh price cut by Dangote Petroleum Refinery.
Dangote Refinery has reduced its gantry price for Premium Motor Spirit, also known as petrol, from N1,250 to N1,215 per litre. This represents a reduction of N35 per litre.
The new gantry price was confirmed on Friday, October 31, through a market survey. The Chief Executive of http://Petroleumprice.ng, Olatide Jeremiah, also confirmed the adjustment. He explained that the price was communicated through consortium marketers linked to the refinery.
Following the reduction, managers of filling stations operated by the Nigerian National Petroleum Company Limited, NNPCL, and MRS have indicated that their pump prices will be reviewed downward.
An NNPCL filling station manager in Abuja, who spoke on condition of anonymity, told Daily Post that customers should expect a price drop from this week as a result of the refinery’s adjustment. A manager at an MRS outlet also confirmed that a price reduction was being considered.
The President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Abubakar Maigandi, also confirmed the development. He said members of the association will reduce their selling prices as soon as they receive supplies purchased at the new rate.
“Our members would cut fuel prices as soon as we receive Dangote Refinery’s petrol from this week,” he said.
Currently, petrol is selling at prices between N1,370 and N1,429 per litre in Abuja and surrounding areas. The new gantry price does not mean motorists will immediately buy fuel at N1,215 per litre, as marketers still need to account for transportation, distribution and operating costs.
The price cut is coming at a time when crude oil prices have seen a decline. Reports show that Brent crude and West Texas Intermediate fell by 3 to 4 percent to about 99 and 104 dollars per barrel respectively.
Motorists are hopeful that the adjustment at the refinery level will translate to lower pump prices from this week, as competition increases in the downstream petroleum sector.
Source: Daily Post Nigeria.