The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the price of Premium Motor Spirit, also known as petrol, may drop significantly to around N800 per litre soon. This possible decline comes as independent marketers begin to work more closely with the Dangote Refinery.
In a recent interview with DAILY POST, IPMAN spokesperson, Chinedu Ukadike, shared this development. He noted that the current average cost of petrol in major cities like Lagos and Abuja sits between N875 and N910 per litre. However, this could reduce further if all goes as expected.
Ukadike explained that the collaboration between the marketers and Dangote Refinery could open up a more competitive market, ultimately leading to lower prices for consumers. He said that for this to happen, the refinery must provide equal pricing opportunities to all marketers.
“Whatever yardstick Dangote Refinery is using to sell to NNPCL, MRS, and others, he should also use the same for all marketers,” he said.
He noted that Nigeria is no longer using a fixed government price for petrol. Instead, prices now depend on the forces of supply and demand. As such, if more marketers are able to buy directly from the refinery at reasonable rates, the market could see even more price drops.
“Price modulation is no longer done by the government but by demand and supply,” Ukadike added.
He also mentioned that lower prices would likely lead to increased petrol consumption. As prices fall, more motorists are expected to buy fuel, which could lead to a boost in daily sales across the country.
“Now that petrol is nosediving to N800 per litre, the volume of consumption will go high because motorists who demand it will increase,” he explained.
Ukadike pointed out that how much petrol people use is directly tied to how much it costs. “Pricing is a determinant factor in terms of petroleum consumption,” he said.
