Marketers Predict N800/Litre As Dangote Cuts Price Again

Petrol prices in Nigeria could fall to about N800/liter in the next weeks as a result of lowering global crude oil prices and the resumption of the naira-for-crude exchange deal with local refiners, as reported.

According to industry experts, fuel prices could drop even lower if crude hits $50 per barrel and dependence on foreign exchange decreases. Premium Motor Spirit (PMS) is now available at the Dangote Petroleum Refinery at N835 per litre, a decrease of N865 from only six days ago.

In the past six weeks, we have seen three price cuts. Refining the refinery’s dedication to providing economical fuel, Anthony Chiejina, a spokesperson for the Dangote Group, acknowledged the change in a statement. Depending on the location, partner marketers are likely to offer petrol at a price ranging from N890-N920 per litre.

As a result of the naira-for-crude contract, local refiners can buy crude using naira instead of foreign currency, which could lead to price reductions.

Local refining and less reliance on fuel imports are the goals of this program, which the federal government has just reinvigorated. Retail pump prices nationwide have stayed relatively stable, even though ex-depot costs have fallen.

If oil prices keep falling, price decreases are likely, according to the Independent Petroleum Marketers Association of Nigeria. The pricing strategy, according to experts, might lead to greater price cuts as a result of rivalry between private depot owners and the Dangote refinery.

On the other hand, there are many who feel that the industry is too vulnerable to abrupt price shifts. In addition, marketers have managed to get clearance to import 117,000 metric tonnes of petrol, which would increase supply across the country.

SOURCE: Ola_write