The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the recent reduction in petrol prices to intense competition between Dangote Refinery and NNPC Limited.
According to Vanguard, this development has led to a significant drop in pump prices across the country, benefitting both independent marketers and consumers.
A survey conducted revealed that major petrol retailers have adjusted their prices in response to reduced ex-depot prices from Dangote Refinery and the Port Harcourt Refinery.
NNPC Retail reduced its pump price from N1,030 to N965 per litre, while outlets like AA Rano and AYM Shafa lowered their prices from N1,070 to N1,020 per litre.
However, Conoil maintained its price at N1,090 per litre, unchanged from November.
According to IPMAN, the competition between the two local refineries has stabilized supply and triggered a price war, ultimately resulting in reduced costs for end users.
This trend is seen as a positive shift, particularly during a period when prices typically rise due to increased demand.
The drop in prices has also enabled independent marketers to access products more easily.
With Dangote Refinery reducing its bulk purchase eligibility from 10 million litres to 2 million litres, smaller marketers can now collaborate to place orders, increasing turnover.
Additionally, the opening of NNPC’s product portal has further improved access, allowing marketers to procure larger volumes of petrol.
IPMAN expressed optimism that the competition would intensify further when the Warri and Kaduna refineries come online next year. These developments are expected to enhance market dynamics, ensuring better availability and potentially driving prices even lower.
The recent adjustments in pricing and increased access to products mark a significant shift in Nigeria’s petroleum market, promising improved profitability for marketers and cost relief for consumers.
SOURCE: Hamzasion