Motorists across Nigeria are starting to benefit from lower petrol prices as filling stations have reduced pump prices by as much as N125 per litre within the last three weeks, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed.
He explained that petrol is currently being sold at many filling stations for between N1,155 and N1,299 per litre, a noticeable drop from the previous average price of about N1,340 per litre.
Maigandi said the price reduction reflects the commitment of marketers and refiners to ensure fuel pricing better aligns with prevailing market conditions.
“Fuel prices will go down further; that was our major agreement. Both Dangote Refinery and depot owners assured Nigerians. Presently, we have reduced it by N125 per litre nationwide,” he said.
Federal Government advocates cost-reflective pricing
The latest reduction in pump prices follows a meeting convened by the Federal Government with major stakeholders in the downstream petroleum sector, including Dangote Refinery, depot owners, and fuel marketers.
The engagement centred on the implementation of cost-reflective pricing after the recent decline in global crude oil prices. During the discussions, government officials encouraged industry participants to transfer the benefits of lower costs to consumers through reduced retail fuel prices.
Depot prices hold steady
Although motorists are paying less at the pump, depot prices have remained relatively unchanged.
Data obtained from PetroleumPriceNG shows that the Dangote Refinery’s ex-gantry price is still N1,075 per litre, while several leading depot operators continue to sell at the same rate.
The report further indicated that fuel importers have also revised their prices downward in response to the Federal Government’s call for pricing that reflects current trends in the international crude oil market.
Analysts foresee additional price cuts
Even with the recent reductions, some industry experts maintain that petrol prices are still above what they should be, given that international crude oil prices recently dropped to their lowest point since March.
Financial analyst Osas Igho believes Nigerians could experience even cheaper petrol if refiners and marketers fully align their pricing with developments in the global market.
According to him, petrol could eventually fall to around N800 per litre if crude oil prices remain subdued and competition within the downstream petroleum sector continues to strengthen.
