The Independent Petroleum Marketers Association of Nigeria has said that petrol is going to sell at N935 per litre beginning from Monday (today) based on the latest arrangement with the Dangote Petroleum Refinery.
IPMAN’s National President, Maigandi Garima, said the reduction in Dangote refinery’s ex-depot price for petrol and the uniform arrangement being put in place, would enable marketers to sell at N935 in their outlets nationwide, incurring a cost of N36 on logistics.
“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 stated that over 30,000 of its members are set to commence petrol loading from the Dangote Petroleum Refinery and the Port Harcourt Refining Company following the reduction of the ex-depot price of the product to N899 per litre.
This came as it was observed that the pump price of petrol dropped on Sunday to between N950 and N980 per litre in a few filling stations in Lagos including MRS, BOVAS and NNPC. However, the cost was above N1,000 per litre in many other outlets in the state.
But IPMAN promised on Sunday that the price would drop further, as it said the cost of petrol would reduce to N935 per litre in more filling stations by Monday (today) in view of Dangote refinery’s new arrangement.
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, disclosed these during separate exclusive interviews with The PUNCH on Sunday.
The development came after intense pricing competition in the nation’s downstream sector, which triggered a price war between NNPCL and Dangote due to a reduction in the ex-depot price to N899 per litre.
On Saturday, the NNPCL, in a surprising development, slashed petrol prices by 12 per cent, to the delight of Nigerians and marketers.
This decision, coming days after the Dangote Refinery reduced its price to N899, was confirmed by the Petroleum Products Retail Outlet Owners Association of Nigeria in a statement on Saturday.
Before now, petrol prices had consistently increased, causing customers to worry that the price hike might be sustained during the festive season.
The reduction in price to N935 in Lagos confirms projections by marketers and was exclusively reported by The PUNCH last Friday.
Providing further updates on the preparations for product lifting, the IPMAN publicity officer stated that marketers are getting ready to start loading petrol at a reduced price, as the national oil company has updated its pricing on the purchase portal.
Ukadike also said that the competition for market share between NNPCL and Dangote is beneficial for Nigerians because, in the end, it will reveal the true cost of PMS production and the expenses incurred in logistics.
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 continued, “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.”
He further noted that marketers will not stick to a single supplier but patronise both refineries based on the location.
Ukadike said, “We would be picking our products from both refineries but the most important thing is the nearness to retail outlets. But Dangote arrangement is via MRS, and NNPCL is helping to load from other depots.”
Regarding a potential price reduction, the IPMAN national officer explained that marketers do not set prices; instead, the factors of demand and supply influence the price, which is why prices vary across the country.
The national officer also assured Nigerians that filling stations owned by its members will be open throughout the festive period and avoid artificial scarcity.
On his part, the PETROAN president said its members are registering with MRS filling to pick up products from its stations as the Dangote and PH refineries haven’t started product disbursement to its members.
He also stressed that a smooth product off-take starting today (Monday) will accelerate the implementation of the price reduction at retail centres nationwide.
He said, “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.”
Also, on a potential price drop, the PETROAN official said, “We have mentioned severally that pricing was still going to drop, and that is the trajectory and reality of how this whole thing is going to play out. So gradually, the price will go down and then come down and vary. It’s not going to be static, and that is why I think it’s not right to do an armchair projection.”
Meanwhile, the Dangote Refinery has said it is now operating at 85 per cent capacity and is on course to deliver European-standard products by January.
“We have gone up to 550,000 bpd, that is 85 per cent capacity in crude distillation,” Edwin Devakumar, head of the refinery, said in an interview with CNBC Africa.
The 650,000-bpd Dangote oil refinery built by Nigerian billionaire Aliko Dangote in Lagos aims to compete with European refiners when operating at full capacity but has been struggling to secure sufficient crude locally.
Same old same old, we are not being ungrateful but tired of this story about one or two outlets whereby the majority outlets sell at what ever price they deem fit
So with this economic turn of events we can safely predict the macroeconomic phenomena that will occur in the new year 2025. In the new year following the pricing of fuel, the prices of goods and services will remain stable at least even though beyond reach of the common man, and yet still in the most interesting scenario, the price of goods and services will start to drop as manufacturers, producers, importers, business people spark a price war amongst themselves to catch a bigger share of the Nigerian market for their goods and services. It should get to a point that foreign investors would want to join in the fight and then it is war-war everywhere.
tpain121: Some people can read this government like a book.
Someone here predicted that these people will reduce fuel price by December.
It's not that hard, Crooks and thieves act in a fairly predictable manner, politicians and selected govt officials aren't so different. Carrot and stick approach to keep the masses docile.
During the time of our son gej, fuel never went for more than 200 naira per liter, even coupled with the fact that he hölistically wanted to remove subsidy.
But fallen demons gathered at their coven to plan evil & today the rest is history.
We should be celebrating fallen demons at more than a 1000naira per liter of fuel when they never even accepted a liter at 180naira per liter
imeeti: 1. Still expensive in my opinion. 2. Although I know it doesn't count. 3. May God help us
Please what has God to do with our foolishness in letting T-Pain and Obasanjo screw us silly with Buhari and APC in 2015 to replace PDP prosperity with shege promax, scamdemically packaged as change?
How does N935 compare with N87 of nine years ago when minimum wage was N18,000
Omooba77: A former Governor of Ekiti State, Dr. Kayode Fayemi, on Tuesday, said the protest that trailed the fuel subsidy removal during the administration of President Goodluck Jonathan in 2012 was due to political interests.
Fayemi said this in his keynote address delivered at a national dialogue organised to celebrate the 60th birthday celebration of the founding National Secretary of Alliance for Democracy and Fellow, Abuja School of Social and Political Thought, Professor Udenta Udenta in Abuja.
The programme was attended by Jonathan, former Minister of Education, Dr. Oby Ezekwesili; former Minister of Aviation, Osita Chidoka, among others.
The PUNCH reports that on January 1, 2012, President Goodluck announced the removal of fuel subsidy and adjusted the pump price of petrol from N65 per litre to N141.
The decision sparked mass protests, tagged ‘Occupy Nigeria’ across major cities of the country.
The price was later re-adjusted to N97, after more than a week of protests.
Petrol price was later reduced to N87 in 2015.
Jonathan faced serious backlash for the fuel price adjustment, especially from leaders of the All Progressives Congress, who were then in different opposition parties, including the defunct Action Congress of Nigeria, Congress for Progressives Congress, All Nigeria Peoples Party, and All Progressive Grand Alliance.
Thinkfree: I bought for 935 from MRS yesterday in abuja
How does that reflect on bolekaja bookkeeper T-Pain's promise to crash the price when it was below N200, depite his balablu noise about hitting the ground running 19 months ago? Is Ogbeni Ojuyọbọ just a failure or a clueless failure
Deltafirstson: Although the pump price of fuel was N197 when President Bola Tinubu took over on May 29, 2023, the product now sells for N617 per litre – less than two months after.
In his inaugural address, Tinubu announced that subsidy was gone, fulfilling a promise that all leading presidential candidates made during the campaign.
However, pump price of fuel hit N537 per litre days after Tinubu ended subsidy.
On Tuesday, the price climbed further to N617, a development that the Nigerian National Petroleum Corporation Limited (NNPCL) attributed to “market forces”.
Nigerians have been lamenting the hardship occasioned by fuel price hike. Amid the lamentation, a video where Tinubu campaigned to slash the price of fuel went into circulation.
Checks by Daily Trust affirmed the authenticity of the video uploaded on the YouTube page of Channels Television.
At his campaign rally in Abeokuta, Ogun State capital, on January 25, 2023, Tinubu spoke on a number of issues, but those of fuel scarcity and naira redesign made the headlines.
However, Tinubu who spoke in Yoruba language, also assured the crowd that though people were saying petrol price would hit N200, it would be reviewed downward under him.
“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200 per litre. Go and relax, we will bring it down,” he had said in the 7th minute of the video.
King Wasiu Ayinde Marshall, a Fuji musician who performed at the rally, interrupted the president’s speech with chants as the crowd cheered.
On the campaign podium with the president were Vice-President Kashim Shettima; Pa Bisi Akande, interim National Chairman of the APC; Femi Gbajabiamila, Chief of Staff to the President; Senator Gbenga Daniel; among other bigwigs of the ruling party.
Tinubu went further to say Nigerians would defy the acute fuel scarcity at the time and trek to cast their votes.
“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200/N500 per litre. Go and relax, we will crash the prices,” he had said.
Just as there is no water (cheap or not) in Eko aromisa lẹgbẹ lẹgbẹ
T-Pain is a disappointment through and through with his ofege master plan for making the people's revenue disappear magically.
Lawmaker scores Lagos Water Corporation low
A Lagos State lawmaker, Mr Saka Fafunmi, on Thursday expressed dissatisfaction at the performance of the state Water Corporation.
Fafunmi, a member of the Lagos State House of Assembly (LAHA), said in Ikeja that the corporation had not been able to justify statutory allocations to it.
The lawmaker, who represents Ifako-Ijaiye Constituency 1 at the assembly, spoke to the News Agency of Nigeria (NAN).
He said that the corporation had the capacity to generate much fund internally through water rates but had relied solely on government funding because of poor performance.
'' Anyone that is using water will be willing to pay for it; the corporation has not been giving us water.
"Is there any new community that Water Corporation has given water? People depend on boreholes; even government estates have industrial boreholes.
"Why do we keep pumping money into an agency that does not give us the desired results?'' he asked.
He noted that the Adiyan Waterworks was located at Ifako-Ijaiye, where many of the residents had resorted to digging boreholes as a means of getting water.
''A lot of people are falling sick because they don't drink clean water.
''In the same compound, where you have sewage, is where you have a borehole.
''There is no way you can manage the sewage that it will not leak and pollute the water; everyone drinking such is drinking contaminated water,'' he said.
The lawmaker urged the corporation to increase water reticulation and supply to residents.
If we use the fuel price of 1070/liter compared to 187,it means there was a 572% increase in fuel price. Considering the new price of 935, from 1070, the price reduction was approximately 13%.
So you raise the price of a commodity by 572% and a few months later, reduce it by 13% and people are happy about it?
That's still a 559% increase from 2023, precisely the "subsidy is gone statement". Nigeria is difficult to understand Sha. Smh
