Petroleum products marketers have indicated that fuel prices may decline nationwide in the coming days following a drop in the cost of imported petrol below the Dangote Refinery gantry price.
The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, disclosed this in an interview on Monday.
His remarks followed data from the Major Energies Marketers Association of Nigeria showing that the average cost of imported petrol was N77 per litre cheaper than the Dangote Refinery gantry price of N799 per litre.
Meanwhile, Dangote Refinery had last week urged marketers to boycott coastal petrol, claiming it was N75 more expensive.
The development has presented a fresh dilemma for petrol marketers.
Despite the ongoing price parity debate, retail fuel pump prices currently stand between N839 and N905 per litre across filling stations in Abuja.
However, market checks showed that some filling stations in Lagos have reduced petrol prices to as low as N817 per litre, which is below the Dangote Refinery backed MRS filling station price of N839 per litre.
The move has further signalled the possibility of a nationwide reduction in petrol prices.
Speaking on the development, Maigandi said that given the current market realities and the provision of an enabling environment, retail fuel prices could be reduced nationwide.
He noted that at least 80 percent of his association’s members currently source petrol from the Dangote Refinery.
Maigandi explained that logistics costs remain a major factor responsible for price parity across the country.
“It depends on the capacity of the product you want to purchase. I said the price differs.
“For those who are buying more than 2 million liters, they have a discount of N20 per liter.
“For those who are buying 5 million liters and above, they have a discount of 25 Naira. They buy at the normal price, 799.
“Presently we need to recommend Dangote for what he did for the country.
“Almost 80 percent of my marketers are buying their product through Dangote directly. That depends on the distance.
“Like in Lagos; they are selling N820 and N825. Here in Abuja they are selling for N875 and N870 per liter.
“Because now if you check, we have only one refinery in the country. So by the time another refinery and import is being brought up, there will be competition and prices will drop. Fuel price will likely come down again,” he said.
It will be recalled that in January, Dangote Refinery increased its gantry price to N799 per litre from N699, triggering an upward spike in retail petrol prices nationwide.
In December last year, Aliko Dangote, President of the 650,000 barrel per day refinery, had pledged to drive fuel prices down to N739 per litre, a target that was not reflected in prices at most filling stations across the country.
As of Monday evening, crude oil prices traded at $64.36 per barrel for West Texas Intermediate and $69.15 per barrel for Brent crude.
