The Independent Petroleum Marketers Association of Nigeria (IPMAN) has projected a possible reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to as low as ₦800 per litre in the coming days.
This was disclosed by the National Public Relations Officer of IPMAN, Chinedu Ukadike, in a recent statement. He attributed the anticipated drop to the ongoing fuel supply from the Dangote Refinery at reduced rates, which has begun to impact the pricing structure in the downstream petroleum sector.
According to Ukadike, the current pump price of petrol, which ranges between ₦875 and ₦910 per litre in Lagos and Abuja, could fall further if the refinery extends its pricing model to all marketers across the country.
Whatever yardstick Dangote Refinery is using to sell to NNPCL, MRS, and others, he should also use the same for all marketers,” Ukadike said. He stressed the need for a level playing field to ensure price competitiveness and uniformity in the market.
Ukadike also highlighted that the deregulated petroleum market now operates based on market dynamics rather than government-fixed pricing. He explained that price fluctuations are now determined by the forces of demand and supply.
Price modulation is no longer done by the government but by demand and supply. Now that petrol is nosediving to ₦800 per litre, the volume of consumption will go high because motorists who demand it will increase,” he said.
The Dangote Refinery, which recently commenced operations, has been selling petrol to some marketers at rates between ₦875 and ₦895 per litre, prompting expectations of broader price cuts if supply becomes more inclusive
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