Dangote Refinery’s Fuel Price Cut Fails to Impact Pump Prices Nationwide
Nigeria’s fuel market faces new tensions as filling stations maintain high petrol prices despite Dangote Refinery’s recent price reduction. The mega refinery’s decision to lower ex-depot prices has yet to translate into relief for consumers at the pump.
The refinery recently decreased its ex-depot price for Premium Motor Spirit (PMS) by ₦49, bringing it down to ₦828 per litre from ₦877 – a 5.6% reduction marking its second price cut in three months. However, motorists continue to pay over ₦900 per litre at filling stations across the country.
Several other depot operators have responded with modest price adjustments. AITEO reduced prices by ₦15 to ₦850, Bovas by ₦21 to ₦848, AYM Shafa by ₦5 to ₦880, and Zamson by ₦3 to ₦880, according to petroleumprice.ng data.
The price adjustments come amid falling global oil prices, with Brent crude at $63.63 and WTI at $59.75 per barrel, following OPEC+’s decision to pause production increases for early 2025.
Industry Response and Challenges The Major Energies Marketers Association of Nigeria (MEMAN) has raised concerns about a new 15% import duty on PMS and diesel, warning it could add approximately ₦122 per litre to petrol prices. Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) attributes the delay in price reductions to existing stock purchased at higher rates.
“These things are not done automatically,” explained IPMAN’s Publicity Secretary, Mr. Chinedu Ukadike, suggesting prices might begin dropping by Monday after current stock depletion.
Current Market Prices Lagos stations currently sell fuel between ₦900-925 per litre, with NNPC outlets at ₦920 and MRS at ₦910. Kano sees higher prices at ₦960, while Abuja stations maintain rates between ₦945-955.
Looking Ahead Analysts suggest pump prices may decrease if crude oil prices continue declining and Dangote maintains lower rates. However, the government’s import duty policy could potentially trigger new price increases.
In related news, Dangote Refinery has increased its LPG (cooking gas) depot price to ₦930 per kilogram from ₦840, representing an 11% increase in less than a week, affecting prices across the distribution chain.
The market continues to watch these developments as Nigerians await meaningful relief from high fuel prices.
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