The ex-depot price of premium motor spirit (PMS) at Dangote Refinery has been reduced to N815 per litre due to a decrease in fuel landing cost to N774.82 per litre.
Despite not officially announcing the price reduction, this move reflects the ongoing price competition in Nigeria’s downstream oil sector.
Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria, confirmed the latest price drop at the Dangote Refinery.
“It is true. There is speculation that the price of imported products is now lower. That is the reason for the price war.
“It is the beauty of deregulation. Dangote has millions of litres and would not want any external force to take its market share. So it would have forced the price reduction,” he said.
Meanwhile, it is not immediately certain if Dangote’s latest petrol price reduction will spur a drop in retail price across its filling stations, such as MRS, which sells for N860 per litre in Lagos and N880 in Abuja.
In the past months, both Dangote Refinery and Nigerian National Petroleum Company Limited have engaged in a price war.
The Petroleum Products Retail Outlet Owners Association recently visited the Minister of State Petroleum, Heineken Lokpobiri, to advocate for fuel price stability and competitive pricing.
