The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the pump price of petrol will drop to ₦935 per litre starting Monday, December 23, 2024. This reduction follows a new agreement with the Dangote Refinery, aimed at reducing fuel costs nationwide.
IPMAN National President, Alhaji Maigandi Garima, confirmed the development on Sunday in Abuja, expressing gratitude to Dangote Refinery for facilitating the price cut. He explained that the reduction is a result of a lower ex-depot price of fuel set by Dangote Refinery, which will allow marketers to sell petrol at ₦935 at their outlets across the country.

The price adjustment follows Dangote Refinery’s recent decision to lower its fuel price by 7.27%, reducing the ex-depot price from ₦970 per litre to ₦899.50. In addition to the price cut, Dangote Refinery has extended favorable credit terms to marketers to ease the impact of purchasing and distribution costs.

To ensure the benefits of this reduction reach consumers, Dangote Refinery has partnered with MRS to sell petrol at ₦935 per litre from its retail outlets nationwide. The price drop, designed to reduce transportation costs during the festive season, has already been implemented in Lagos and will be extended across the country from Monday.

Garima further explained that the new pricing system will allow marketers to purchase fuel at a fixed ex-depot price of ₦899.50, thanks to Dangote Refinery’s nationwide price harmonization effort. This initiative is expected to stabilize fuel prices across the country, especially during the holiday period.

Highlighting the ongoing competition in Nigeria’s downstream petroleum sector, Garima noted that the downward trend in fuel prices is likely to continue. He compared the current prices with those of the previous year, when fuel in some northern and eastern regions was sold for as high as ₦2,000 per litre due to reliance on imported fuel.

The price drop comes in the wake of similar adjustments by the Nigerian National Petroleum Corporation Limited (NNPCL), which also lowered its ex-depot price from ₦1,020 to ₦899 per litre. This price reduction is a direct result of deregulation in the sector and growing competition, which experts hope will lead to sustained stability and lower prices for consumers in the long term.