The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that the intense competition between Nigeria’s two refineries, owned by Dangote and NNPC Limited, has led to a recent decrease in the price of petrol in the country.
A recent report revealed that many petrol retail outlets have lowered their prices in response to reduced ex-depot prices at both Dangote Refinery and the Port Harcourt Refinery. For instance, NNPC Retail decreased its price from N1,030 to N965 per litre, while retailers like AA Rano and AYM Sharfa reduced their prices from N1,070 to N1,020 per litre. However, Conoil has maintained its pump price at N1,090 per litre, unchanged since November.
In an interview with the media IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, stated that the competition among local refineries and the steady supply of petrol have contributed to the price drop. He remarked, “This is a positive development for both independent marketers and consumers. Despite the usual price increase due to heightened demand during this time, we are currently experiencing the opposite. The availability of products has improved, leading to a price rivalry between NNPC and Dangote.”
Chief Ukadike also noted that the situation would likely become even more dynamic next year when the Warri and Kaduna refineries are expected to be operational. He mentioned that independent marketers are now able to purchase directly from both refineries due to a modest increase in turnover. In the past, at prices around N1,300 per litre, many of the members struggled to sell even 5,000 litres a day, but they are now performing considerably better.
He further added that they now have direct access to products, with the NNPC portal allowing marketers to procure as much product as needed. Additionally, Dangote has responded to their request by lowering the quantity required for bulk purchase eligibility.
