The Independent Petroleum Marketers Association of Nigeria has announced that petrol will be sold at N935 per litre starting from Monday, under a new arrangement with the Dangote Petroleum Refinery.
IPMAN’s National President, Maigandi Garima, said that the reduction in Dangote Refinery’s ex-depot price for petrol, along with the uniform arrangement being implemented, would allow marketers to sell at N935 per litre nationwide, with a logistics cost of N36.
“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k.
“The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday. Previously, the loading price was N970 per litre, but from Monday, petrol prices will drop to N935,” Garima stated.
The association also announced that over 30,000 of its members are set to begin loading petrol from the Dangote Petroleum Refinery and the Port Harcourt Refining Company, following the reduction of the ex-depot price to N899 per litre.
Meanwhile, the pump price of petrol dropped on Sunday to between N950 and N980 per litre at some filling stations in Lagos, including MRS, BOVAS, and NNPC.
However, many other outlets in the state were still selling above N1,000 per litre.
However, IPMAN assured on Sunday that the price would decrease further, with petrol expected to drop to N935 per litre at more filling stations by Monday, due to the new arrangement with Dangote Refinery.
Similarly, retail outlet owners under the auspices of the Petroleum Products Retail Outlet Owners Association of Nigeria have begun registration with MRS filling station to lift Dangote petrol at N935 per litre.
The IPMAN National Publicity officer, Chinedu Ukadike, and the PETROAN President, Billy Gillis-Harry, made this disclosure in an interview on Sunday.
The development followed intense pricing competition in the nation’s downstream sector, which sparked a price war between NNPCL and Dangote after the ex-depot price was reduced to N899 per litre.
On Saturday, in a surprising move, NNPCL cut petrol prices by 12%, bringing relief to Nigerians and marketers.
Providing further updates on preparations for product lifting, the IPMAN publicity officer stated that marketers are ready to begin loading petrol at the reduced price, as the national oil company has updated its pricing on the purchase portal.
Ukadike also mentioned that the competition between NNPCL and Dangote is advantageous for Nigerians, as it will ultimately reveal the true cost of PMS production and logistics expenses.
“According to him, the price war is central to a deregulated oil sector.
He said, “NNPCL has changed their price at their portal. It means that everyone who has access to that portal can be able to request and pay for products. Once you pay, you will called to the depot to pick up your products. Yes, they have changed the price on their portal.”
He added, “For us, the reduced price remains a welcome development as that is the beauty of a deregulated sector. You know, when there are multiple sources of petroleum products, there will be production and pricing competition. That interplay of pricing has come to the centre stage, and it is now to the advantage of the commuters who wish that this petroleum product will be sold at a lesser price.
“The fight to control market share between NNPCL and Dangote is healthy for Nigerians because, at the end of the day, we would know the actual cost of PMS production and the amount spent on logistics.
“It will also help marketers in our retailing capacity and pick up more volumes. The cost today is very high, and the reduced price will help us pick more volumes. Commuters are no longer taking products the way they used to but with the price decrease, there will be heavy consumption.”
Meanwhile,
The PETROAN president stated that its members are registering with MRS filling stations to pick up products, as the Dangote and PH refineries have not yet started product disbursement to its members.
He also emphasized that a smooth product off-take beginning today (Monday) will accelerate the implementation of the price reduction at retail centers nationwide.
“We have not started picking up products from the Port Harcourt refinery, even from the Dangote refinery. But some of our members, out of their magnanimity, are trying to sell at a cheaper price even in Abuja.
“Dangote price mechanism brings value for PETROAN members, and we are partnering with MRS filling station to sell at N935 per litre nationwide. Our members partnering with MRS will do that. The station has opened its valves to accommodate as many members that can work with them. So from this morning (Sunday), we were already up and running on their platform to register our members. It is a wonderful thing that is coming up and we hope NNPCL will also follow suit.
“The economies of scale favour Dangote, but NNPCL is doing its best to flood the country with available products. I think a lot of good things will happen in the sector even till the new year.
“So let’s see how offtake of products will pan out across the country from tomorrow. If the demography of offtake spreads everywhere and we can compute what the logistics costs would be, it will be easy to predict what will happen. But, certainly, when refiners reduce price, and we can buy directly, we will ensure Nigerians benefit, and that is what PETROAN is doing,” he said.
