The Dangote Group has announced a reduction in the price of petrol at its refinery. The new price is set at ₦1,200 per litre for Premium Motor Spirit (PMS), while the coastal price has been pegged at ₦1,153 per litre. This move is expected to impact fuel supply costs across Nigeria's downstream distribution chain.
The Dangote Group's spokesperson, Anthony Chiejina, confirmed the price review in a statement. According to him, the adjustment is a result of a downward review in the refinery's pricing structure due to uncertainty in the global oil market. The ongoing tensions in the Middle East are also said to be influencing global oil markets.
The Dangote Group believes the adjustment will influence fuel supply costs across various distribution channels, including depots and retail outlets. With the new price, fuel marketers may review their landing costs, particularly those sourcing petrol locally rather than importing.
The reduction in petrol price is expected to affect marine deliveries to depots located along Nigeria's coastal regions.
The Dangote Group's move to reduce petrol prices is a welcome development, but it's essential to scrutinise the motivations behind this decision. The group's spokesperson, Anthony Chiejina, cited uncertainty in the global oil market as the reason for the price review. However, Nigerians deserve transparency on how this reduction will trickle down to the masses. The new price of ₦1,200 per litre is a significant drop, but it remains to be seen how fuel marketers will adjust their landing costs. The impact on everyday Nigerians will depend on whether this reduction translates to lower prices at the pump.
