As the Federal Government ordered the return of the naira-for-crude policy, the Independent Petroleum Marketers Association of Nigeria has warned marketers and importers against the losses that may follow any sudden price cut.
This is even as an independent marketer, SGR dropped the price of premium motor spirit to N899 per litre across its filling stations in Ogun State.
Speaking to our correspondent, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, advised fellow marketers and importers to play safe while making purchases because there could be sudden price slashes by Dangote, the Nigerian National Petroleum Company Limited or other major players in the sector.
Our correspondent reports that following the return of the naira-for-crude deal by the Federal Government last Wednesday, the Dangote refinery Thursday dropped its ex-depot petrol price to N865, signalling the beginning of another round of price competition in the downstream sector.
It was reported that a notice sent to marketers by the refinery indicated that a litre of petrol will now be sold at N865 inclusive of charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
It disclosed that other products are still priced in dollars, while the sale of PMS via coastal vessels remains on hold.
With the latest development, our correspondent observed that filling stations have started reducing their pump prices.
About four SGR filling stations along the Lagos-Ibadan Expressway and the Sagamu-Ijebu/Ode road dropped their PMS prices to N899/litre, being about the cheapest in the axis, and N16 below the price offered by Dangote partner, Heyden, which is also on the road.
Most of the filling stations in Lagos and Ogun State have dropped their prices from over N940 to N930 or N920 per litre.
Dangote refinery’s partner, Heyden, reduced its pump price to N915 on Friday to reflect the marginal reduction in the ex-depot price.
A source who pleaded anonymity told our correspondent that Mr Aliko had since last month planned to announce a significant petrol price drop on his 68th birthday, which was on Thursday.
However, the source said the plan could not materialise as planned due to the break in the naira-for-crude deal, saying the billionaire businessman was able to reduce about N15 from its ex-depot price on his birthday and may do more going forward.
It could be recalled that since December 2024, the Dangote refinery has been ahead of other key players in the downstream sector, changing prices whenever it felt there was a need for that. It was observed that the NNPC reacts to market pressure by lowering its price anytime Dangote calls the shots, a total departure from tradition.
Before the Dangote refinery came on stream, the NNPC used to dictate the prices of PMS under a regulated petroleum sector. Until September 2024, the NNPC was the sole importer of PMS into Nigeria.
However, a report by Energy Intelligence said the 650,000-barrel-per-day Dangote refinery “has broken state-owned NNPC’s tight monopoly on refining and products marketing in Nigeria and has structurally shifted Atlantic Basin gasoline balances, pressuring European margins.”
The IPMAN Vice President, Fashola, warned marketers and importers to exercise caution to avoid running into debt when the major players slash the prices without prior notice.
“My advice to the co-marketers is to play safe. They have to be careful, and they should equip themselves with appropriate information before they make their purchases because prices can drop.
“That is the only way to go about it if we want to avoid losses.
“And for importers, they should do the same thing. They should do their homework before they bring in products. They should look at what is happening locally in the Nigerian market and check it out. If they can make money, they can bring it. It is good. It is an alternative,” he stated.
Fashola said it will be for the good of the masses if Dangote and other refineries lower the prices of fuel.
Contrary to claims, Fashola said the Dangote refinery is not dictating the price, but it is ensuring a competitive market.
“Dangote is a businessman, and Dangote refinery is a private entity, and we have other players too. So, once we have players in the field, everybody wants to take advantage of the market.