Refiners push for crude as Dangote slashes petrol price by N129
CORAN Urges Tinubu to Supply More Crude to Local Refineries as Dangote Slashes Petrol Price
As the Dangote Petroleum Refinery reduced its petrol gantry price on Friday, the Crude Oil Refineries Association of Nigeria (CORAN) has appealed to President Bola Tinubu to ensure increased crude oil supply to local refineries in order to make fuel more affordable for Nigerians.
www.cjsoftflix.com reports that the Dangote refinery cut the gantry price of Premium Motor Spirit (PMS), also known as petrol, from N828 to N699 per litre. The reduction comes just days after the company assured Nigerians of sufficient fuel supply to prevent queues at filling stations during the Yuletide season.
Marketers who spoke anonymously said the development could push pump prices down to about N750 per litre, potentially the lowest petrol price since Nigeria fully deregulated the downstream petroleum sector in 2024.
They described the latest price cut as a major shock to marketers still importing PMS, recalling previous complaints by depot owners who accused the Dangote refinery of slashing prices whenever importers’ vessels arrived in Nigeria.
Market Reactions to Dangote’s Price Cut
According to data from Petroleumprice.ng, while Dangote dropped its ex-depot price to N699 per litre, several other depots retained prices above N800 per litre.
The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, confirmed the reduction, replying simply, “Confirmed,” when contacted.
Officials of the Dangote refinery also unofficially confirmed the price adjustment. It was learnt that the refinery has been cautious about being perceived as a price dictator after some marketers previously reported it to regulators for allegedly influencing pump prices.
CORAN Commends Dangote Refinery
Reacting to the development, CORAN commended the Dangote Petroleum Refinery for ramping up domestic PMS production and implementing a significant price reduction at a critical period.
In a statement issued by its spokesman, Eche Idoko, the association said the move offers much-needed relief to households and businesses preparing for the festive season.
“The Dangote refinery continues to blaze the trail in Nigeria’s refining landscape. This achievement demonstrates operational excellence and a strong commitment to easing the economic burden high fuel costs have placed on Nigerians,” the statement read.
CORAN also praised Alhaji Aliko Dangote, Chairman of the Dangote Group, and the refinery’s management and staff for their resilience, innovation and dedication to Nigeria’s energy vision.
Appeal to Tinubu on Crude Supply
The association expressed appreciation to President Tinubu for ongoing reforms supporting domestic refineries and urged the Presidential Team on Energy and Petroleum Resources to remain committed to the sector.
CORAN specifically appealed for:
- Adequate crude oil supply to local refineries
- Fiscal incentives to attract and retain investors
- Protection of domestic refining as a strategic national asset
According to CORAN, Nigeria’s modular and mega refineries are key to unlocking broad-based economic growth by 2026.
The association also noted that since the administration of late President Umaru Musa Yar’Adua, this is the first time Nigerians are witnessing a notable reduction in fuel prices during a festive season without scarcity.
Mixed Reactions from Marketers
Despite public excitement over cheaper fuel, some marketers have expressed concerns. In September, the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) criticised Dangote’s frequent price cuts, arguing that they often coincide with importers having cargoes in transit.
DAPPMAN’s Executive Secretary, Olufemi Adewole, said such timing creates price shocks, undermines competition and places financial strain on other market participants.
Nevertheless, many Nigerians have welcomed the Dangote refinery’s intervention, urging further reductions to ease transportation and living costs.
Dangote Refinery’s Growing Influence
Before the Dangote refinery began petrol production, the Nigerian National Petroleum Company Limited (NNPCL) largely determined fuel prices as the sole importer due to subsidies. That role now appears to have shifted to the 650,000-barrel-per-day Dangote refinery, currently Nigeria’s only fully functional PMS-producing refinery.
Petrol prices had soared to nearly N1,200 per litre following subsidy removal, but repeated cuts by the Dangote refinery have helped moderate prices. While consumers celebrate the relief, many marketers continue to lament losses.
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