The Petroleum Retailers Outlet Owners Association of Nigeria has said the recent petrol price cuts by Dangote Refinery and NNPC filling stations will help reduce inflation by lowering transportation and production costs.
The group, led by Dr. Billy Gillis-Harry, on Monday praised NNPC for lowering its price from N920 to N875 per litre.
However, in Lagos, the national oil company reportedly reduced its price to N860 per litre at its filling stations.
The NNPC’s move has intensified the price war between the mega Dangote Refinery and its Warri facility, which is still operating well below its installed capacity.
Nigerians view the competition as a positive shift for the downstream market, which has long been dominated by NNPC. For years, NNPC was the sole importer of petroleum products due to the lack of local refining.
NNPC’s price cut follows Dangote Refinery’s announcement of MRS, AP, and Heyden as its off-takers, a move aimed at maintaining lower prices nationwide.
PETROAN called the price cuts a bold move, stating, it would ease Nigerians’ financial burden amid rising inflation. The group also praised NNPC for its proactive efforts to support the public.
“This price reduction will be a huge relief to many Nigerians struggling to make ends meet,” Gillis-Harry stated.
He stated that the petrol price reduction would benefit Nigerians by lowering transportation costs, making commuting and goods transport more affordable.
“Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food,” he added.
The PETROAN president also praised Dangote Refinery for agreeing to refund ₦65 to retail outlet owners impacted by the price reduction.
“This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.
“The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members,” Gillis-Harry said.
