Oil marketers under the umbrella body of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have announced that the price of Premium Motor Spirit (PMS), commonly called petrol, will drop to N935 per litre by Monday.

The development is attributed to the Dangote Refinery’s new arrangement, which includes a reduction in the fuel ex-depot price and a uniform pricing scheme.

 Dangote Refinery on Thursday reduced the price of its petrol product to N899.50 per litre, to provide much-needed relief for Nigerians ahead of the holiday season.

Commenting on the development, Alhaji Maigandi Garima, IPMAN National President, said the new price is a result of the Dangote Refinery’s decision to reduce its fuel ex-depot price.

Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899. 50k.

“The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday.

“We have been loading from the Dangote refinery and the refinery is saving us in this festive period,’’ he said in an interview with the News Agency of Nigeria (NAN) on Sunday.

Garima also stated that the downstream sector competition being witnessed currently is expected to lead to a continuous drop in fuel prices. He attributed this development to the deregulation of the petroleum industry, which has enabled private-sector players to participate in the refinery business.

The IPMAN president recalled that during the 2023 yuletide, petrol was sold at N2,000 per litre in some parts of the country due to the scarcity of fuel. However, he said with the commencement of operations at the Dangote Refinery and other private refineries, fuel prices have dropped significantly. Garima noted that the highest price at which fuel can be sold in the Northern and Eastern parts of the country is currently N1,100 per litre.

He commended the Nigerian National Petroleum Company (NNPC) Ltd. for its decision to slash the fuel ex-depot price from N1,020 to N899 per litre. Garima noted that this development reflects the response to deregulation and increased industry competition, which is expected to lead to a further reduction in fuel prices.

“By the time Warri and Kaduna resume production, one can buy products at cheaper rates and it is good for the economy,’’ he added