Dangote Petroleum Refinery has announced another reduction in its ex-depot price of Premium Motor Spirit, bringing the rate down from N1,125 to N1,075 per liter.
The refinery’s fourth downward pricing adjustment in a month, the most recent N50 cut, which becomes effective right now, is predicted to boost competition in Nigeria’s downstream petroleum industry.
The corporation has also matched its coastal loading price to the new ex-depot rate and stopped its 20-member consortium model, so that all qualified marketers can load goods directly.
The News Chronicle reports that the most recent change will save Dangote Refinery’s ex-depot petrol price more than N200 per liter in one month. Experts in the sector predict the move may inspire filling stations to buy directly from the refinery, helping to bring down pump costs in the next few days.
The Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and the Federal Competition and Consumer Protection Commission repeatedly claim that fuel prices in a deregulated market should be driven by competition and market forces.
Improved product availability and better consumer pricing are also expected to result from increased local refining capacity.
