Nigerian Petroleum Marketers Urged to Pass on Savings to Consumers as Dangote Refinery Cuts Petrol Price
In a move that is expected to have a positive impact on the Nigerian economy, the Dangote refinery has announced a reduction in the ex-depot price of petrol from N950 to N890 per litre. The price cut, which was attributed to the recent decline in global crude oil prices and a favorable outlook in the international energy market, has been welcomed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The association has urged marketers to reduce the price of petrol at their retail outlets, following the reduction in the ex-depot price. According to the National President of PETROAN, Billy Gillis-Hary, while the price cut is a welcome development, there is a need for a smooth transition in retail pricing. He explained that many filling stations had already stocked up on products purchased at the previous price, making it challenging to implement an immediate reduction in pump prices.
However, Gillis-Hary advocated that marketers who purchase petrol at the new rate from Sunday onwards should ensure that the price change is reflected in their retail outlets. He emphasized the need for marketers to collaborate with the Dangote refinery and other stakeholders to ensure fair pricing and sustainability in the downstream petroleum sector.
The Dangote refinery’s decision to reduce the ex-depot price of petrol is a reversal of its previous stance, having increased the price from N899.50 to N955 per litre on January 17, 2025, due to rising global crude oil costs. The refinery had earlier announced a 7.5% reduction in the price of petrol to N899.50 per litre on December 19, 2024.
In a statement, the Group Chief Branding and Communications Officer of the Dangote refinery, Anthony Chiejina, said that the price reduction was in line with the company’s commitment to transparency and fairness, reflecting fluctuations in the global crude oil market. He expressed confidence that the price reduction would contribute to lowering petrol costs nationwide and easing the prices of goods and services.
Chiejina also called on marketers to work together to pass on the benefits of the price reduction to consumers, which would have a positive impact on the overall cost of living and various sectors of the economy. He noted that the initiative was in support of the federal government’s economic recovery plan, led by President Bola Ahmed Tinubu, which aims to make Nigeria self-sufficient in refined petroleum products and a leading oil export hub.
The reduction in the ex-depot price of petrol is expected to have a ripple effect on the Nigerian economy, with the potential to drive down the prices of goods and services, and contribute to the country’s economic recovery. As such, PETROAN has reaffirmed its commitment to working with the Dangote refinery and other stakeholders to ensure fair pricing and sustainability in the downstream petroleum sector.
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