IPMAN Announces Fuel Price Adjustment: N935 Per Litre Starting Monday
By The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the price of petrol will drop to N935 per litre starting Monday. This development follows a new pricing arrangement facilitated by Dangote Refinery.
Reduced Ex-Depot Price from Dangote Refinery
The reduction in fuel price is attributed to Dangote Refinery’s decision to lower its ex-depot price from N970 per litre to N899.50 per litre. This adjustment, along with a uniform pricing arrangement, aims to ensure that marketers across the country can sell petrol at a consistent rate of N935 per litre.
According to reports from the News Agency of Nigeria (NAN), Dangote Refinery has also introduced favorable credit terms for marketers. These measures are part of a broader initiative to make fuel more affordable for consumers nationwide.
Nationwide Rollout of Price Reduction
To ensure the benefits of the price reduction reach end-users, Dangote Refinery has partnered with MRS to distribute petrol through its retail outlets nationwide. This program, which has already commenced in Lagos, will be rolled out across the country from Monday. The initiative is designed to alleviate transportation costs, especially during the festive season and beyond.
Benefits for Marketers and Consumers
Speaking on the new pricing strategy, the IPMAN president highlighted the impact of the arrangement:
“Dangote Refinery’s new system ensures a fixed ex-depot price of N899.50, enabling marketers to maintain a uniform selling price nationwide. This initiative comes at a crucial time, especially during the festive season when fuel demand typically surges.”
He noted that previously, petrol was loaded at N970 per litre at Dangote Refinery. The reduction to N899.50 per litre reflects the refinery’s commitment to easing the burden on Nigerians.
Deregulation and Competitive Pricing
The IPMAN president further emphasized the positive effects of deregulation on the downstream sector. He stated that competition among players, including private sector refineries, will continue to drive down fuel prices:
“We have always advocated for private sector participation in refinery operations. With more refineries set to commence production soon, consumers can expect further price reductions.”
Historical Perspective and Future Outlook
Reflecting on past challenges, the IPMAN president recalled that during the 2023 festive period, fuel prices soared to as high as N2,000 per litre in parts of the North and East due to reliance on imported fuel. In contrast, the current highest price in those regions stands at N1,100 per litre, thanks to local refining efforts.
He expressed optimism that once the Warri and Kaduna refineries resume operations, fuel prices will become even more affordable, benefiting both consumers and the broader economy.
Commendation for Policy Measures
The IPMAN president lauded the crude swap deal facilitated by the Nigerian government, noting that it is a significant step towards economic growth. Similarly, the Nigerian National Petroleum Corporation (NNPC) recently reduced its ex-depot price from N1,020 to N899 per litre, further reflecting the competitive dynamics of the deregulated sector.
Conclusion
The reduction in fuel prices to N935 per litre is a testament to the ongoing reforms and competitive efforts in Nigeria’s petroleum industry. As more private refineries come online and competition intensifies, Nigerians can look forward to more affordable fuel and an improved economic outlook.
