By Our Reporters
Inside: The ripple effects of competitive pricing, economic relief for Nigerians, and the next steps in fuel market dynamics.
The recent plunge in petrol prices has been attributed to heightened competition among stakeholders in the downstream sector, a development welcomed by consumers nationwide. Previously retailing at over ₦1,020 per litre, petrol prices dropped to ₦899.50k following significant adjustments by the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).
Dangote Refinery’s Role
The Dangote Refinery, located in Lagos, initiated the price reduction last week, setting a benchmark that other players in the sector have since followed. This move, according to Aliko Dangote, the President of Dangote Industries Limited, was made possible by the federal government’s crude-for-Naira swap deal. Dangote commended President Bola Tinubu for facilitating this arrangement, which has played a pivotal role in stabilizing the market.
Anthony Chiejina, the Chief Branding and Communications Officer of the Dangote Group, emphasized the company’s commitment to ensuring that the reduced prices reach end-users. “We have partnered with MRS to sell petrol at ₦935 per litre across retail outlets nationwide,” he said, noting that the price cut is already in effect in Lagos and will expand to other regions.
NNPCL’s Commitment
NNPCL’s 12% price reduction reflects its resolve to make petroleum products more accessible. Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), lauded the NNPCL’s efforts, citing the move as a step toward easing the economic burden on Nigerians.
“Lower petrol prices mean reduced transportation costs, which in turn increase disposable income and stimulate economic growth,” Gillis-Harry stated. He further noted that these reductions are likely to lower the cost of living, enabling Nigerians to afford basic necessities and improve their quality of life.
Regional Price Variations
While Lagos enjoys the lowest prices at ₦899 per litre, other regions such as Warri, Port Harcourt, and Calabar have seen ex-depot prices adjusted to ₦970 per litre. PETROAN’s Zonal Chairman for the Eastern Zone, Chief Sunny Nkpe, assured the public that the organization is closely monitoring the situation to ensure that the benefits of the price cuts are not eroded by unscrupulous practices.
The Crude-for-Naira Swap Deal
The Naira-for-crude deal brokered by the federal government has been pivotal in the recent market adjustments. This arrangement has enabled local refiners to access crude oil at favorable terms, reducing production costs and ultimately leading to lower pump prices.
Aliko Dangote praised this policy, describing it as a “game-changer” for the Nigerian economy. “Our focus is to ensure that Nigerians can access high-quality petroleum products at affordable rates, benefiting both the economy and the people,” he said.
Port Harcourt Refinery Update
Contrary to recent rumors, the NNPCL has confirmed that the Port Harcourt Refinery remains fully operational. Chief Corporate Communications Officer Olufemi Soneye stated, “Reports suggesting the refinery’s shutdown are completely false. Loading operations are ongoing, and the facility continues to meet its production targets.”
A Glimpse of Hope
Looking ahead, PETROAN’s National PRO, Dr. Joseph Obele, expressed optimism about further price reductions. “With global crude oil prices declining and the Naira gaining strength, we expect petrol prices to drop even further before the end of January 2025,” he said.
The combination of competitive pricing, policy reforms, and local refining capacity has created a glimmer of hope for Nigerian consumers, who have long grappled with high fuel costs. As stakeholders rally to sustain these gains, the focus now shifts to ensuring that the benefits of reduced prices translate into tangible economic relief for the average Nigerian.
