Dangote Refinery, marketers agree to further petrol price cuts after government meeting

Dangote Refinery, petroleum depot owners and fuel marketers have agreed to implement further reductions in the pump price of Premium Motor Spirit (PMS), following a stakeholders’ meeting convened by the Federal Government to review cost-reflective fuel pricing.

The meeting, held in Abuja and chaired by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), brought together key players in the downstream petroleum sector, including representatives of Dangote Refinery, depot operators and petroleum marketers.

The discussions focused on ensuring that falling international crude oil prices translate into lower fuel prices for consumers across the country.

Speaking at the meeting, the Chief Executive of the NMDPRA, Rabiu Umar, reiterated the regulator’s position that petrol and other petroleum products should reflect prevailing market realities, particularly the decline in global crude oil prices.

The Federal Government had earlier urged refiners and marketers to adopt cost-reflective pricing in line with the decline in Brent crude prices, which recently hovered around $72 per barrel following easing tensions in the Middle East.

Confirming the outcome of the meeting, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, and President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, said stakeholders had agreed that petrol prices would continue to decline as market conditions improve.

According to them, if crude oil prices continue their downward trend, petrol could eventually sell for around N1,000 per litre or lower.

Gillis-Harry noted that the current retail prices of between N1,150 and N1,299 per litre in Abuja and surrounding areas are expected to fall further, stressing that all stakeholders are committed to making fuel more affordable.

He, however, maintained that marketers cannot be compelled to sell petrol below cost, warning that such a move would threaten the sustainability of businesses and disrupt fuel supply.

“We are willing to work with the NMDPRA, the Federal Competition and Consumer Protection Commission (FCCPC), the Minister of Petroleum Resources and other stakeholders to ensure price reduction are implemented for the benefit of Nigerians,” he said.

READ ALSO; Dangote Refinery cuts petrol price again, slashes ex-depot rate

He explained that although consumers expect petrol prices to fall immediately whenever crude oil prices decline, fuel pricing remains dependent on several international market variables, including crude oil prices, foreign exchange rates, freight costs and other supply chain expenses.

According to him, the downstream petroleum market is highly dynamic, making it impossible to announce a fixed cost-reflective pump price.

Gillis-Harry disclosed that stakeholders agreed that every segment of the value chain—including refiners, depot owners, transporters and marketers—would absorb part of the cost burden to achieve gradual reductions in fuel prices without jeopardising business operations.

He added that recent price reductions by Dangote Refinery and retail marketers demonstrate that the industry is already responding to prevailing market conditions.

The PETROAN president also stressed that government cannot unilaterally fix pump prices in a deregulated market, noting that market forces must continue to determine the final retail price of petroleum products.

Similarly, Maigandi said Dangote Refinery and petroleum marketers remain committed to passing on the benefits of lower crude oil prices to consumers through further reductions in pump prices.

He said the meeting ended with a broad consensus that fuel prices would continue to decline as crude oil prices moderate, although the exact timing and magnitude of future reductions would depend on market realities.

Over the past three weeks, Dangote Refinery, depot operators and filling stations have collectively reduced petrol prices by about N100 per litre, bringing pump prices in Abuja and neighbouring areas to between N1,150 and N1,299 per litre.

At the weekend, Nigerian National Petroleum Company Limited also reduced its pump price to N1,150 per litre, while retail outlets operated by MRS, AA Rano, Ranoil and NIPCO adjusted their prices to between N1,191 and N1,240 per litre.