Petrol prices to drop below 960 per litre as IPMAN projects holiday relief

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has forecasted a reduction in petrol prices, with Lagos residents expected to pay N950 per litre, while Abuja residents may see prices drop to N990 per litre due to location-specific logistics.

Price Adjustments

Chinedu Ukadike, IPMAN’s National Publicity Officer, revealed that the Dangote Petroleum Refinery has reduced its ex-depot price to N899.50 per litre, marking a 7% decrease from the previously adjusted N970 per litre. This is the second price cut within a month.

Ukadike emphasized that logistics costs, particularly diesel prices, will affect final pump prices:

Lagos: Expected at N950 per litre.

Abuja: Expected at N990 per litre.

Dangote Refinery Holiday Discounts

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, announced a special holiday pricing system:

N899.50 per litre for purchases of two million litres with a 15-day bank guarantee.

N895 per litre for purchases of 10 million litres under similar terms.

Additionally, consumers purchasing petrol on a cash basis will receive an equivalent amount on credit, supported by bank guarantees from Access Bank, First Bank, or Zenith Bank.

Stakeholder Reactions

IPMAN Chairman, Abubakar Maigandi, praised the refinery’s move, describing it as a “welcome development” and assuring Nigerians that retail prices will reflect the reductions. He also noted that reduced transportation costs would positively impact economic activities.

Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), commended the price reduction, stating, “This will alleviate the suffering of Nigerians and reduce transportation costs during the festive period.”

NNPCL Supply Challenges

Despite the positive developments, the Nigerian National Petroleum Company Limited (NNPCL) has struggled to meet its crude oil supply obligations to the Dangote Refinery, delivering only 202,000 barrels per day in December, against an agreed 385,000 barrels per day.

Analysts expect the refinery to diversify its crude sources by 2025, potentially stabilizing Nigeria’s downstream sector and enhancing fuel availability.

Festive Impact

With the festive season underway, stakeholders remain optimistic that the price reductions will ease the financial burden on Nigerians, reduce the cost of living, and foster a competitive fuel market in the long term.