Fuel prices decline as oil deregulation triggers competition
Data from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and major oil marketers confirms that petrol prices have seen a significant reduction due to the effects of deregulation.
According to sources, oil marketers imported over 2 billion liters of Premium Motor Spirit within 42 days, bringing in increased supplies to fuel stations. With deregulation in place, competition is now driving the prices downwards.
A representative from IPMAN has attributed the fall in fuel prices to its recent partnership with Dangote Petroleum Refinery.
As announced in the partnership deal, “the announcement has already crashed prices, bringing down fuel costs by an average ₦10, ₦15 or so. Direct competition between refiners is now in effect, eradicating middlemen who previously drove prices up.
Meanwhile, independent oil marketers no longer have to rely on middlemen. They will now source petroleum products directly from the manufacturers, instigating greater competition among oil refiners. Forecasts indicate that prices could drop further within the remainder of the year.
This partnership between IPMAN and Dangote has noticeably reduced the costs of fuel products, signaling a progressive decline in pricing.
Sources from leading oil marketer companies agree with IPMAN, crediting deregulation and heightened competition for the dip in petrol prices.
“Oil deregulation has truly levelled the playing field for oil producers, giving market forces to dictate the way forward.”
Petrol price reductions can be seen on various fill-up stations nationwide, like the decrease of ₦10 from ₦1,080 per liter. However, no one guarantees a fixed minimum price and prices can surge back at any time
