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Dangote Petroleum Refinery has reduced its premium motor spirit (PMS) price from N880 to N865 per liter, following a meeting between the company’s officials and Finance Minister Wale Edun. The reduction is expected to impact petrol prices across the country.
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Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), welcomed the price cut, stating, “We are happy with the development, and since the government has assured now that the naira-for-crude policy is a key policy directive, we hope it will not be truncated again so that Nigerians can continue to enjoy favourable petrol prices.” IPMAN plans to adjust its prices accordingly, taking into account freight rates and other costs.
Petrol retail outlets like MRS Oil & Gas, Ardova Plc, and Heyden are likely to reduce their pump prices from N925 to N910 or N915 per litre to reflect the reduction in the ex-depot price.
Industry experts have weighed in on the development. Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), attributed the price cut to deregulation, saying, “The continued price cut can be sustained as far as the fundamentals of the market can sustain it. The cut we are experiencing is a function of foreign exchange and international crude oil prices. If these two factors are stable, then the price reduction can be sustained.”
Billy Gillis-Harris, President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), also hailed the price slash, emphasising the importance of economic factors in pricing. “Price rise or fall is good as long as it is based on entrepreneurial factors and not on an artificial basis. Pricing should be driven by economic factors. For now, it is being influenced by lower crude oil prices being experienced globally,” he said.
However, Gillis-Harris raised concerns about sudden price changes affecting marketers who may have stocked up at higher prices. “Some marketers bought the product on Wednesday at a high price, and the next day the price was slashed. So, who will bear the loss? Why the sudden pricing changes?”
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