5 hours ago
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- Nigerians have reacted to the decision by the Dangote Petroleum Refinery to slash petrol prices by N65
- The refinery explains that the reduction, which is the second in February, is to provide succour during the Ramadan season
- Three stations will be selling Dangote petrol at the new prices, and one has already notified customers of the new prices
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Reactions continue to trail Dangote Petroluem Refinery’s slash in ex-depot price of petrol by N65 to N825 per litre.
The refinery announced the latest price cut in a statement released on Wednesday, February 26.
Source: Getty Images
According to the Dangote refinery, the strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season
It was also revealed that Nigerians will be able to purchase the Dangote petrol at new prices at MRS Holdings stations, Ardova AP (Ardova Petroleum) and Heyden stations:
Part of the statement reads:
"Nigerians will be able to purchase the high-quality Dangote petrol at the following prices in all our partners' retail outlets. For MRS Holdings stations, it will sell for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East respectively."The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East."
Source: Getty Images
Nigerians react to new prices
The announcement by Dangote refinery has sparked reactions among Nigerians, including experts with many welcoming the price reduction while others remain skeptical about its impact.
Lagos-based motorist Kunle Ajemobi told Legit.ng:
"This is a good development, Thank you sir(Dangote). But we need more stations across the country to sell at these prices for it to make a real difference."Kelvin Emmanuel, an energy expert and CEO of Diary Hills also reacted:
"The positive cracking margins are truly beginning to kick in from the refinery hitting 600k barrels per day processing capacity. "Admirable that despite importing 12 million barrels for February in USD and also applying a bridging allowance (previously the exclusive preserve of PEF before it was subsumed after PIA), Dangote is now applying this allowance for downstream offtakers to ensure price uniformity.This underscores the importance of the Ministry of Petroleum designing a privately held and managed fund from a portion of the levy NMDPRA applies per liter. This fund would provide capital to revive the 22 depots across Nigeria and enhance distribution pipeline infrastructure for white fuels evacuation."Logistics is a critical component in PMS pricing. When I mentioned the government's lack of planning, this is one of the issues I was referring to."A fuel importer who spoke on condition of anonymity also commented on the new price of Dangote petrol.
"Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol price, it is taking a toll on our business. That’s the simple truth."NNPC reduces fuel price
Legit.ng previously reported that Nigerian National Petroleum Company Limited (NNPCL) retail stations have reduced petrol prices from N960 to N945 per litre in Lagos.
The price adjustment took effect on Thursday, February 13.
With the new Dangote petrol prices, it is expected that another adjustment will be made.
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Source: Legit.ng
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