The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the ongoing reduction in petrol prices to growing competition between Dangote Refinery and NNPC Limited refineries.

Reports gathered by Vanguard reveal that several petrol stations have adjusted their pump prices following a decrease in ex-depot costs by Dangote Refinery and the Port Harcourt Refinery.

For instance, NNPC Retail has lowered its pump price from ₦1,030 to ₦965 per litre. Similarly, other marketers like AA Rano and AYM Shafa have reduced their prices from ₦1,070 to ₦1,020 per litre. However, Conoil remains an outlier, maintaining its price at ₦1,090 per litre.

Speaking on the development, Chief Chinedu Ukadike, IPMAN’s Public Relations Officer, described the price drop as a welcome relief for both consumers and independent marketers.

“Contrary to the usual trend of rising prices during periods of high demand, we are now seeing a decline due to increased supply and competition. This price war between NNPC and Dangote refineries has been beneficial,” Ukadike told Vanguard.

He also expressed optimism about the market’s future, noting that the anticipated start-up of the Warri and Kaduna refineries next year would further stabilize supply and prices.

Ukadike explained that independent marketers now find it easier to source products directly from the refineries, thanks to adjustments in bulk purchase requirements. “When prices hovered around ₦1,300 per litre, many marketers struggled to sell even 5,000 litres daily. Now, we’re seeing better turnover as prices fall,” he said.

Dangote Refinery has reduced its bulk purchase eligibility from 10 million litres to 2 million litres, which Ukadike noted has made transactions more accessible to independent marketers working in groups.

Experts also predict that the operation of Dangote and Port Harcourt refineries will have broader economic benefits. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the impact on Nigeria’s foreign exchange market, stating, “The import substitution from these refineries will ease demand pressure on forex.”

Further findings by Vanguard showed that oil marketers continue to revise pump prices in line with new ex-depot rates from both NNPCL and Dangote Refinery, now set at ₦899 and ₦899.50 per litre, respectively.

Some filling stations operated by NNPCL and MRS, which source from Dangote Refinery, have already adjusted their prices to reflect the changes.

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