LEKKI, Nigeria – Dangote Petroleum Refinery don reduce di ex-gantry price for Premium Motor Spirit (petrol) to N825 per litre. Dis reduction come as fuel importers and di refinery dey battle for market share.
Dis new price na N10 less than di N835 wey de refinery talk say it go sell petrol last month. Di adjustment happen soon after di Nigerian Upstream Petroleum Regulatory Commission report show say Nigeria produce 1.485 million barrels of crude oil per day for April, up from 1.40mbpd in March.
Marketers confirm dis price reduction on Monday, sey di refinery dey offer customers a N10 rebate wen dem successfully load product from di facility. Di rebate strategy na part of a plan to outsmart competitors and make sure say dem retain dem market share.
As di competition dey hot, marketers say dis move fit lead to lower pump prices for consumers who depend on fuel for dem daily economic activities. Chinedu Ukadike, National Publicity Secretary for Independent Petroleum Marketers Association of Nigeria (IPMAN), talk sey di reduction na because of di fierce competition between Dangote refinery and fuel importers.
Ukadike discuss dis for one interview, sey, “Di latest price reduction na because of competition. Dangote dey sell at N825. Dis na di beauty of deregulation. E go help stabilize price, and competitors go try do wetin dem fit to attract customers.”
He also add say, “We dey expect more drop in petrol price as competition continue. Di refinery dey try show say dem go price their product well.”
Inside di market, one anonymous marketer also talk sey di refinery don make di price reduction quietly, so as to keep dem leading position in di domestic market. “Dem don cut price to edge out importers. Every time Dangote reduce price, other depot owners must follow,” e talk.
Another marketer confirm say di refinery dey reduce di bulk price through discounts instead of open price cuts. “Dangote dey give rebate to bulk buyers, making dem lift at around N825. Now, pump prices drop to as low as N827 to N830.”
Petrol-depot operators like MRS Tincan and Pinnacle dey sell products at N827, down from over N838 in di past weeks. Meanwhile, petrol-importing marketers dey sell for between N837 to N870 per litre, which dey high compared to Dangote prices.
Olatide Jeremiah, one oil and gas expert, sey di price adjustment na strategy to maintain stronghold in di market, as local competition heighten. “Di price drop wey we see today na tactical move aimed at edge out competitors. Local dynamics go influence prices more than global crude oil prices.”
Efforts to reach Dangote spokesperson Anthony Chiejina for comment on di price cut no yield result as he no respond to calls and messages.
On crude production, Nigeria produce an average of 1.485 million barrels per day in April according to NUPRC report. This output still below di OPEC quota of 1.5 million barrels, but represent a positive shift from di previous months.
Di stats from NUPRC show sey di total crude production in April na 1.683 million barrels per day, including both crude oil and condensate, marking a slight rise from di figures for March.
Di government still dey aim to reach a target of 2 million barrels per day by 2025, but di road dey tough as production figures dey fluctuate.
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