Dangote refinery reduces petrol loading cost

In its effort to control market share, Dangote Petroleum Refinery has reduced the loading cost of its petrol from N825 to N815 per litre.

However, SentinelnewsNG.Com investigations revealed that the reduction has not reflected in the pump prices of petrol as at Friday morning.

The new price structure, introduced on Thursday was met with enthusiasm by oil marketers. As a result, many opted to bypass private depot owners and began sourcing their products directly from the refinery.

The recent N10 price reduction is likely to prompt private fuel depots to lower their prices in response.

It would be recalled that on Tuesday, it was reported that the landing cost of petrol imported into Nigeria dropped to N774.72 per litre, with marketers predicting that this ongoing decline could reduce pump prices of PMS to around N800 per litre.

Marketers noted that the landing cost, presently at N774.72 per litre, which includes shipping, import duties, and exchange rates, has decreased by N50.28 from the previous cost of N825 per litre at the Dangote Petroleum Refinery.

The situation, Industry stakeholders believe will sparked a price war, with retail marketers favoring imported products due to their lower prices.

The National Publicity Secretary of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, stated, “Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,”

When added to the N10 levy charged by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, this will increase the cost to N825 per litre.

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