IPMAN Attributes Petrol Price Drop to Competition Between Dangote, NNPC
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has credited the recent reduction in petrol prices to growing competition between Dangote Refinery and NNPC Limited refineries.
Reports from Vanguard indicate that multiple petrol stations have adjusted pump prices in response to lowered ex-depot costs from both Dangote Refinery and the Port Harcourt Refinery. NNPC Retail, for instance, has reduced its pump price from ₦1,030 to ₦965 per litre. Similarly, marketers like AA Rano and AYM Shafa have cut prices from ₦1,070 to ₦1,020 per litre. However, Conoil remains unchanged, maintaining a price of ₦1,090 per litre.
Speaking on the trend, Chief Chinedu Ukadike, IPMAN’s Public Relations Officer, described the price cuts as a relief for consumers and independent marketers alike.
“Contrary to the usual trend of rising prices during periods of high demand, we are now seeing a decline due to increased supply and competition. This price war between NNPC and Dangote refineries has been beneficial,” Ukadike stated.
He further expressed optimism about the future, citing plans for the Warri and Kaduna refineries to come online next year as a positive development that will enhance market stability. Ukadike also highlighted improvements in product accessibility for independent marketers due to adjustments in bulk purchase requirements.
“When prices hovered around ₦1,300 per litre, many marketers struggled to sell even 5,000 litres daily. Now, we’re seeing better turnover as prices fall,” he noted.
Notably, Dangote Refinery’s decision to lower its bulk purchase eligibility from 10 million litres to 2 million litres has made transactions more accessible for independent marketers, particularly those operating in groups.
Economic experts predict broader benefits from the competitive dynamics between Dangote and NNPC. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasized the potential impact on Nigeria’s foreign exchange market. “The import substitution from these refineries will ease demand pressure on forex,” he explained.
Further findings reveal that both NNPC Limited and Dangote Refinery have set new ex-depot rates at ₦899 and ₦899.50 per litre, respectively. As a result, filling stations operated by NNPC, MRS, and others sourcing from these refineries have begun to adjust their pump prices to reflect the changes.
The ongoing competition signals a shift in Nigeria’s petroleum market dynamics, with potential long-term gains for consumers and the economy
