Petroleum Marketers Remain Optimistic About Lower Petrol Prices This Yuletide Season
The prices of Premium Motor Spirit (PMS), also known as petrol, may be heading for a significant decrease by the end of the year, as Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) have projected. This comes on the back of Dangote Refinery’s decision to cut its ex-depot petrol price by ₦20, from ₦990 to ₦970 per litre.
According to Billy Gillis-Harry, President of PETROAN, the price reduction will likely lead to further price cuts in the coming weeks, making petrol more affordable for Nigerians. Gillis-Harry believes that the development will have a significant impact on the downstream petroleum market, resulting in lower prices at fuel stations nationwide.
The lowering of fuel prices follows a recent agreement between Dangote Refinery and oil marketers to facilitate direct petrol purchases, a move aimed at streamlining supply chains and reducing end-user costs. The partnership is expected to bring about significant benefits to both the players in the industry and consumers.
Patrick Ukadike, Spokesperson for IPMAN, echoed the sentiments of Gillis-Harry, suggesting that the price reduction could push petrol prices down by as much as ₦15 to ₦20 per litre, depending on the location. This is in line with reports that IPMAN members have already reduced their prices by ₦100 to ₦200 per litre in the past few weeks, from ₦1200 to ₦1250 per litre.
Ukadike predicts that the cheapest petrol price Nigerians can expect by December 2024 will be between ₦900 and ₦1000 per litre. He attributes this optimism to the renewed health of the market, citing the reduction in the ex-depot prices of PMS at Dangote Refinery.
