Petrol prices at filling stations across Nigeria are expected to decline in the coming days following a reduction in the gantry price of Premium Motor Spirit (PMS) by the Dangote Petroleum Refinery.
The refinery has reduced its gantry price of petrol to N1,215 per litre, a development expected to influence pump prices across the downstream petroleum sector.
Managers of filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) and MRS Oil Nigeria have indicated that they would adjust their prices following the latest reduction.
An NNPCL filling station manager in Abuja, who spoke on condition of anonymity, said that the outlet expected to reduce its pump price this week.
“Our fuel price is expected to drop from this week following Dangote Refinery’s petrol price cut,” the manager said.
A manager at an MRS filling station also confirmed that a reduction was likely in the coming days.
The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, similarly said members of the association would lower their prices once they received supplies reflecting the refinery’s latest pricing.
“Our members would cut fuel prices as soon as we receive Dangote Refinery’s petrol from this week,” he said.
The anticipated reduction comes amid a decline in international crude oil prices, with West Texas Intermediate (WTI) and Brent crude reportedly falling by three and four per cent to $99 and $104 per barrel, respectively.
The movement in crude oil prices is an important development for the petroleum market, although domestic petrol prices are also influenced by factors such as exchange rates, distribution costs, transportation expenses and marketers’ margins.
Meanwhile, motorists in Abuja and surrounding areas are currently paying between N1,370 and N1,429 per litre for petrol at filling stations.
The expected adjustment could provide some relief to consumers facing rising transportation costs and other economic pressures, although the extent of any reduction will depend on the prices at which marketers obtain supplies and their individual operating costs.
With Dangote Refinery playing a significant role in domestic petrol supply, changes in its gantry price are closely watched by marketers and consumers for their potential impact on retail fuel prices.
However, the actual pump prices and timing of the anticipated reductions will depend on when filling stations receive the lower-priced product and implement corresponding adjustments.
