Abdullateef Aliyu, Lagos and Datti Ahmed, Kano
Despite reduction in the gantry (ex-depot) price of premium motor spirit (PMS) otherwise known as petroleum by Dangote Refinery, the price reduction is yet to be reflected by most filling stations as a litre of PMS is still sold above N900 across the country, checks by Daily Trust have shown.
It would be recalled that Dangote Refinery has reduced its gantry price of Premium Motor Spirit (petrol) by N49 per litre, selling petrol at N828 per litre, down from N877, representing a 5.6 per cent decrease.
It was learnt that the price review took effect from Friday, marking the refinery’s second major adjustment in three months in response to market realities.
Apart from Dangote which slashed the prices, other competitors also reduced their depot prices as captured by petroleumprice.ng.
AITEO reduced its price by N15 to N850 representing 1.73%; Bovas reduced by N21 to N848 representing 2.42%; AYM Shafa reduced by N5 to N880 representing 0.56% reduction and Zamson reduced by N3 to N880 representing 0.34%.
Daily Trust reports that with the fall in prices of crude oil, many Nigerians and stakeholders had anticipated reduced pump prices.
Checks yesterday indicated that Brent Crude is sold at $63.63 while West Texas Intermediate (WTI) crude drops to $59.75.
Oil prices have continued to slip after the Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to pause output hikes in the first quarter of next year as a signal of oversupply in the market.
Last Sunday, the OPEC+ agreed to a small oil output increase for December and a pause in increases in the first quarter of 2025.
OPEC+ has raised output targets by around 2.9 million barrels per day – or around 2.7% of global supply – since April, but slowed the pace from October amid predictions of oversupply.
Despite the recent reduction in crude oil, prices of PMS have not been significantly affected, according to marketers.
Then the debate over the introduction of 15 per cent import duty on PMS and diesel by the federal government had also raised fears of further price hike as warned by the major marketers.
The Major Energies Marketers Association of Nigeria (MEMAN) had cautioned over the 15 per cent import duty.
The MEMAN Executive Secretary had said, “We think to protect our local refineries, tariff is clearly one of them. We think that 15% tariff, first of all tariff, should be the last consideration. There are many other things that we are doing that we have done, the tariff as high as 15% is almost like a ban on imports.
“We think it’s a bit high. And we think it will have a significant impact on the pump prices. We have done some preliminary calculations. This would add N122 to the price of PMS as of today, this is our calculation.
“And as you know, especially for diesel, that increase in costs finds its way into increase in logistics costs, increase in transportation costs, and thereby into inflation. So we think that the number is relatively high.
“MEMAN advocates a public policy debate, transparent numbers, evidence-based, time limited relief, independent regulator verification and regulatory safeguards/guardrails to protect consumers from higher pump prices.”
Marketers confirm reduction by Dangote
Amidst the debate, Dangote slashed its gantry price by N49 on Friday. However, days after, the price reduction is yet to reflect a downward reduction in pump prices.
In Lagos, most filling stations sell between N900 to N925 per litre as checks by our correspondent indicated.
Bovas filling station along Ogunnusi road sells at N900; NNPC retail stations sell at N920; Mobil, N910; Fatgbems – N915; Capital 915.
MRS filling stations affiliated with Dangote also sell at N910 per litre.
Pump price remains N960 in Kano despite reduction by Dangote refinery
Most filling stations in Kano are selling PMS at N960 per litre 72 hours after Dangote refinery has reduced its gantry price of its products.
A visit to AY Maikifi, Aliko filling stations on Maiduguri road revealed that the price remains N960.
Similarly at Matrix Energy and Ajaj filling stations on Zaria road, the price is the same just as ID Makole oil and gas filling station on Eastern bye sells at the same N960 to motorists.
An MRS filling station at Gyadi-Gyadi is however not selling.
In Abuja, NNPC retail outlets sell at N945 per litre while independent filling stations sell at N955.
A filling station attendant who spoke with our correspondent said, “At NNPC here, fuel remains N920 per litre.
Marketers who spoke with our correspondent confirmed the reduction but said this might reflect in the pump prices this week.
“We heard they dropped prices about four days ago but we are hoping things will change,” a marketer said.
The Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Ukadike in a chat with our correspondent said most marketers want to finish their current stock bought at higher prices before effecting the latest reduction.
He said the reduction might come by Monday.
He said, “I think they are also expecting the fuel they bought at higher prices to finish so that they can get another one. These things are not done automatically. It is a systematic thing.”
According to him, further reduction in PMS pump price would be largely dependent on the reduction of crude oil prices in the international market.
