In a significant move, the Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) from N990 to N970 per litre. This price, intended for marketers purchasing directly from the refinery, underscores the refinery's commitment to supporting Nigerians and promoting affordability.
Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, explained the gesture in a statement released on Sunday, describing it as an end-of-year appreciation to Nigerians for their unwavering support.
“This price reduction is our way of expressing gratitude to the good people of Nigeria for supporting the refinery’s vision. It’s also a show of thanks to the government for its encouragement, which has been crucial in fostering domestic enterprise and improving our collective well-being,” Chiejina stated.
Reassuring Nigerians, Chiejina emphasized that the refinery will maintain its commitment to producing high-quality, eco-friendly, and sustainable petroleum products. He also highlighted the company’s dedication to ramping up production to meet domestic fuel demands, dispelling fears of supply shortages.
The move comes amidst growing competition in Nigeria’s deregulated downstream sector. Marketers and industry experts have reported a steady decrease in pump prices across the country. According to Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), the collaboration between Dangote and independent marketers is driving down costs.
“Just the announcement of our partnership with Dangote has already reduced prices by N10 or more in many areas. Independent marketers are now buying directly from producers instead of middlemen, increasing competition. By the end of the year, prices could drop further,” Ukadike shared.
The Federal Government, the Nigerian National Petroleum Company Limited (NNPCL), and Dangote Refinery have reportedly finalized an agreement to supply 28 million litres of PMS daily to the Nigerian market. This deal is expected to prioritize local demand over exports and foster stability in the downstream sector.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also confirmed this resolution, highlighting its potential to stabilize prices, manage fluctuations, and encourage collaboration among stakeholders.
Despite the optimism, the NNPCL and Dangote Group have denied knowledge of any formal agreement regarding the daily supply of 28 million litres. However, PETROAN insists the deal is authentic and rooted in verified documents.
