The Nigeria National Petrol Company Limited, (NNPCL) has announced a price reduction of its Premium Motor Spirit’s price to ₦860 per litre after Dangote refinery reduced their petrol price and even promised a refund to customers who paid over the advertised amount at their designated partners.
The new development highlights the heightened competition for market share between the two downstream giants.
Remember that Dangote had announced a price reduction from N890 per litre to N825 per litre during the weekend.
According to reports from Channels Television, Oil marketers confirmed the price change from NNPCL, but said the state oil company was yet to send an official memo to them concerning the new price.
While Dangote Refinery has stated that the reduction is part of the ongoing efforts to ensure that Nigerians benefit from cheaper fuel, the development has been welcomed by the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN).
The group’s President, Billy Gillis-Harry, said the reduction by Dangote and NNPCL would help the economy as lower transportation costs would crash food prices.
In a statement released on Monday,
“Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food,” he said.
PETROAN President lauded the refund policy of Dangote Refinery, noting that about ₦16 billion loss would be absorbed by the refinery through the refund policy.
“This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from ₦890 per litre to ₦825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.
“The refund amount is ₦65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a ₦16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members,” he stated.
The Dangote refinery and the NNPCL’s Port Harcourt refinery are currently the only petrol producers in Nigeria.
