The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has stated that the recent reduction in the ex-depot price of Premium Motor Spirit (PMS), or petrol, by Dangote Petroleum Refinery may not lead to an immediate decrease in pump prices across the country.
PETROAN’s National President, Billy Gillis-Harry acknowledged the reduction in depot prices but pointed out the challenges involved in implementing an immediate change in retail prices. He explained that many filling stations still have stock that was purchased at the previous higher price, which complicates the ability to adjust prices right away.
“Price changes are not usually instantly applicable, but ultimately it will apply,” said Gillis-Harry. He further elaborated that because fuel products had already been purchased at the previous prices, the price reduction could not immediately be reflected in retail outlets.
On Saturday evening, the Dangote Refinery announced a reduction in the ex-depot (gantry) price of petrol from ₦950 to ₦890 per litre. This price adjustment was attributed to a drop in global crude oil prices and an optimistic outlook for the international energy market, according to a report by Nairametrics. The reduction came just weeks after the refinery had raised petrol prices, citing a rise in crude oil prices in the global market.
Earlier in December 2024, Dangote Refinery had reduced prices by 7.5% to ₦899.50 per litre, but by January 17, 2025, the price had increased again to ₦955 per litre due to rising Brent crude oil prices. The company has expressed its commitment to being transparent in its pricing policies, with hopes that this latest price reduction would help ease the cost of petrol nationwide, potentially reducing the prices of goods and services.
Despite the challenges of immediate price reductions at petrol stations, Gillis-Harry urged PETROAN members to adjust their retail prices when purchasing petrol at the new reduced rate.
PETROAN also reiterated its commitment to collaborating with the Dangote Refinery and other stakeholders to ensure fair pricing and sustainability within Nigeria’s downstream petroleum sector.
