LAGOS:Dangote Petroleum Refinery’s recent decision to reduce the ex-depot price of Premium Motor Spirit (PMS) from N950 to N890 per litre has sent ripples through the petroleum marketing sector, with both positive and negative consequences.
The price adjustment, announced on Saturday night, is attributed to favorable global energy market shifts and a drop in international crude oil prices. The move aims to lower petrol prices for consumers and provide economic relief. However, it has put many marketers in a difficult position, especially those who had recently purchased fuel at the higher price. These marketers are now facing the challenge of selling at a loss to stay competitive.
Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged that while the price reduction benefits consumers, it presents challenges for marketers. He explained that those who bought fuel before the announcement will have to lower their prices to clear old stock, potentially incurring losses.
Fashola also pointed out that Dangote’s decision came in response to recent concerns from traders who were considering importing cheaper PMS, as imported fuel was priced lower than locally refined products. The refinery’s price cut is seen as a strategic move to address this competition and retain market share.
While the immediate effects are felt by marketers, Fashola emphasized the overall benefit to the public, as cheaper petrol can ease the financial burden on consumers. He also expressed hope that the Nigerian National Petroleum Company Limited (NNPC) might follow suit with a similar price reduction.