This reduction follows a new pricing and distribution arrangement initiated by the Dangote Refinery, which includes a decrease in the refinery's fuel ex-depot price.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol will now sell at N935 per litre nationwide, effective Monday.
This reduction follows a new pricing and distribution arrangement initiated by the Dangote Refinery, which includes a decrease in the refinery's fuel ex-depot price.
However, the uniform pricing arrangement is expected to standardize pump prices across the country.
Speaking on Sunday in Abuja, IPMAN National President, Alhaji Maigandi Garima, commended the Dangote Refinery for the initiative, describing it as a major step toward stabilizing fuel prices and ensuring availability across all regions.
The News Agency of Nigeria (NAN) reports that Dangote Refinery has announced a 7.27% reduction in fuel price, lowering it from N970 per litre to N899.50 per litre at its loading gantry.
The company has also introduced generous credit terms for marketers to ease distribution.
To ensure the price cut reaches end consumers, Dangote Refinery has partnered with MRS to sell petrol at N935 per litre through its retail outlets nationwide.
The price reduction, aimed at alleviating transportation costs during the festive season and beyond, has already commenced in Lagos and will roll out nationwide from Monday.
“The new arrangement allows marketers to pay a fixed ex-depot price of N899.50 per litre,” a statement from the refinery explained.
The IPMAN National President lauded the initiative, noting that the ex-depot price reduction would make petrol more affordable across the country.
“Previously, we loaded at N970 per litre, but with Dangote's new pricing arrangement, fuel will be sold at N935 per litre from Monday,” he said.
He attributed the ongoing competition in the downstream sector to deregulation, predicting further reductions in fuel prices as more private refineries enter the market.
“More refineries are coming, and we will continue to see price drops in the sector. This is why we have advocated for private sector participation in refinery operations,” he added.
Recalling the challenges of 2023, he noted that fuel prices soared to N2,000 per litre in parts of the North and East due to reliance on imported fuel.
However, with local refineries now operational, prices have stabilized, with the highest in those regions currently pegged at N1,100 per litre.
The IPMAN president expressed optimism that once refineries in Warri and Kaduna resume production, fuel prices will drop further, benefiting the economy.
He also praised the crude-for-Naira swap deal, describing it as a positive step for economic growth.
In a related development, NNPC Ltd. has also reduced its ex-depot fuel price from N1,020 per litre to N899, reflecting the growing competition and adjustments to deregulation in the downstream sector.