By Emamuzo Iboma
Nigeria’s downstream fuel market is presently experiencing a price war as fierce rivalry among gas retailers prompts aggressive price reductions, causing instability throughout the industry.
Since the Dangote Petroleum Refinery announced last week that its partners, including MRS, Heyden, AP (Ardova Petroleum), Optima Energy, Hyde, and Techno Oil, were lowering their prices from N920 per litre to N890, other marketers have also been lowering their prices.
In Lagos yesterday, NNPC retail outlets further dropped their price from N910 per litre to N880 in Lagos and N935 in Abuja.
Each liter of the product cost N880 at the NNPC filling station in Apple Junction, Lagos.
However, at the NNPC retail locations on Acme Road in Ogba, College Road in Ogba, and Charity Road in Abule, the price per liter stayed at N910.
The situation has created stiff competition among retail outlets as they battle to retain customers with the most affordable price.
The refinery equally announced a reduction in the gantry price of petrol, from N865 to N835, effective last week. The reduction in gantry price marks the second price reduction within a week.
The refinery assured that high-quality Dangote petrol will now be available at the following prices across all its partner retail outlets.
Dangote disclosed that its key partners—including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil—will offer petrol at N890 per litre, down from N920 in Lagos.
In the South-West, the price will be N900 per litre, reduced from N930.
In the North-West and North-Central, the price will be N910 per litre, lowered from N940.
In the South-East, South-South, and North-East, the price will be N920 per litre, down from N950.
According to Dangote, these price reductions reaffirm its commitment to providing high-quality petrol at affordable rates, benefiting consumers across the nation.
“In addition, we are working collaboratively with our partners to ensure equitable reflection of this price reduction.”
Nigerian consumers will continue to benefit from Dangote Petroleum Refinery’s persistent efforts to lower the cost of gasoline and other refined petroleum products. For instance, the refinery doubled price reductions by N125 in February.
Additionally, as a result of the refinery’s persistent efforts, products like diesel and Liquefied Petroleum Gas (LPG) have seen notable price reductions.
The refinery expressed its expectation that the recent decrease in PMS prices will have a beneficial knock-on effect across the economy, giving consumers much-needed respite and fostering overall economic expansion, especially during the Easter season.
“Dangote Petroleum Refinery remains steadfast in its commitment to ensuring a steady supply of premium-quality petroleum products, with sufficient reserves to meet domestic demand, along with a surplus for export.
“This strategy is designed to support the stability of the domestic market while also contributing to the growth of Nigeria’s foreign exchange reserves.
“In addition, Dangote Petroleum Refinery urges all parties involved in the industry, such as distributors and marketers, to keep purchasing goods from the refinery in order to guarantee that the advantages of these price cuts are felt throughout the nation.”
In an effort to gain control of the market, Dangote last month signed agreements with three fuel retailers, Heyden, AP, and MRS, to sell gasoline at its numerous filling stations in Lagos, other South-West states, the North, the South-South, and the South-East, with prices ranging from N860 to N895 per liter.
The agreement may help consumers who have been struggling with high fuel prices by lowering the price of Premium Motor Spirit (PMS) at the pumps and making fuel more affordable for Nigerians.
The oil and gas market in Nigeria is anticipated to be significantly impacted by this agreement, especially with regard to fuel scarcity and price stability.
Despite the Federal Government’s promise last week that the Naira-for-crude policy would not be abandoned, indications from the fuel market indicate that this is not the case. MRS, Heyden, and AP have abruptly raised the price of gasoline from N860 and N895 per litre (which were previously agreed upon with Dangote) to N920 and N940 per litre, respectively, indicating that the previous agreement has fallen through.
