Petrol Price May Crash By December (See Possible Price)

Petroleum marketers in Nigeria have projected a potential reduction in the price of Premium Motor Spirit (PMS), also known as petrol, to between ₦900 and ₦1,000 per litre by the Yuletide season, following interventions by Dangote Refinery.

The President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, and the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, disclosed this in separate interviews with Daily Post on Monday.

The optimism stems from Dangote Refinery’s recent decision to cut its ex-depot petrol price by ₦20, reducing the price from ₦990 to ₦970 per litre. The company described the move as an appreciation gesture to Nigerians for their support.

Gillis-Harry highlighted the potential impact of the price reduction on the downstream petroleum market, stating that it could lead to further price cuts in the coming weeks.

The development follows weeks after Dangote Refinery signed an agreement with Nigerian oil marketers to facilitate direct petrol purchases, a move expected to streamline supply chains and reduce end-user costs.

He said, “It is good that the Dangote Premium Motor Spirit price has come down. This will impact heavily on the price of petrol for Nigerians.

“Definitely, the pump price will be reduced going forward. It is a good thing for players and Nigerians that the price of PMS is coming down.

“The price can even reduce further in the coming Yuletide. I can’t tell the exact price at the moment until the product is transported to our members’ filling stations nationwide.

“We, the PETROAN members, have always been optimistic that the price of PMS will be cheaper depending on the price of crude oil.”

Similarly, Ukadike hinted at a cheaper petrol price in the coming Yuletide.

He explained that the recent price cut by Dangote Refinery means that fuel prices across IPMAN members’ filling stations will drop between ₦15 and ₦20, depending on the location.

According to him, in the past weeks, IPMAN members reduced petrol prices from ₦1200 and ₦1300 to ₦1100 and ₦1150 per litre.

Ukadike added that the cheapest petrol price Nigerians should expect by December 2024 should be between ₦900 and ₦1000 per litre.

He said, “The reduction in the ex-depot prices of PMS at Dangote Refinery shows the market is now healthier. Instead of the price increasing, it is now decreasing.

“Based on the location, filling station outlets will reduce the petrol pump price by at least ₦15 to N20.

“Marketers have started reducing pump prices even before the Dangote Petrol price cut.

“Before, the price of petrol at IPMAN members’ retail outlets went for N1200 and N1300, but it has dropped to between ₦1100 and ₦1150 per litre.

“It is difficult to estimate. However, the cheapest price Nigerians should expect by December 2024 should be between ₦900 and ₦1000 per litre.”