Petrol prices have crashed in recent weeks from N1,200 per litre to N1,025 as competition grows in the marketMajor marketers have drastically crashed their petrol prices as Dangote and Port Harcourt refineries jostle for higher market shareThe development comes as IPMAN said they hope to lift products from the Port Harcourt Refinery this week
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Petrol prices have crashed drastically in the last three weeks from N1,200 to N1,025 per litre, following intense competition in the market.
Findings show that Major Energy Marketers Association of Nigeria (MEMAN) outlets such as MRS, AA Rano, Conoil and other filling stations have drastically slashed their petrol prices.
This development comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed recently that its members hope to lift petroleum products from the newly refurbished Port Harcourt refinery.
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Independent marketers express hope of lifting petrol from Port Harcourt refinery
Credit: Bloomberg/Contributor
Source: UGC
IMPAN express hope for stricter competition
Also, the Dangote Refinery and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have continued dialogue to conclude details for lifting fuel at the refinery.
The Nigerian National Petroleum Company Limited (NNPC) owns the Port Harcourt Refinery, which began operations in November and is said to be operating at 70% capacity.
IPMAN’s public relations officer, Chinedu Ukadike, said the refinery supplies only NNPC retail outlets and a few marketers.
He explained that independent marketers expect to load products from the refinery with the anticipated increase in the supply of petroleum products.
The IPMAN spokesman said that marketers are now lifting petroleum products directly from the Dangote Refinery after reaching a deal with the facility’s management and the refinery’s decision to reduce the minimum bulk purchases for marketers to two million litres of petrol.
Petrol prices will crash further as the naira strengthens
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Filling stations reduce fuel price as Dangote, marketers strike deal
Vanguard reports that Ukadike said that, due to the reduction, IPMAN members can now access petrol from the Lekki-based refinery.
The IPMAN chief stated that accessing products directly from refineries has made the market more competitive as independent marketers can now compete with major marketers.
According to reports, Ukadike stressed that competition in the market has just started, saying that with the crash in the naira exchange rate, pump prices will also crash further in the coming weeks.
PETROLA reached a deal with Dangote Refinery
Henzodaily.ng earlier reported that the Dangote Refinery and PETROAN are discussing lifting petroleum products from the facility.
Billy Gillis-Harry, PETROAN’s president, led the association in negotiating and signing a deal with the $20 billion refinery.
The move indicates increased interest in the products from the 650,000bpd refinery, as members of the Major Energy Marketers Association of Nigeria (MEMAN) and IPMAN have promised to purchase them.
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Analyst predicts further crash
Analysts have predicted a further crash in petroleum product prices as competition intensifies among marketers and the Port Harcourt and Dangote refineries.
Adeola Yusuf, energy policy analyst, said the coming on-stream of the Port Harcourt Refinery is a sign of good things to come because it will deepen competition, and consumers will benefit from it.
“The crash in petrol prices is not a surprise. The market is highly competitive between marketers and the two functional refineries.
“Remember that Port Harcourt refinery announced its petrol prices at N1,045 per litre, and following outrage from marketers and Nigerians, it reduced the price to N1,035.
“Still, marketers and Nigerians are saying the prices are too high compared to the one offered by Dangote Refinery at N970 per litre. Now, marketers have a choice,” he said.
Dangote Refinery imposes new conditions
Henzodaily.ng previously reported that the Dangote refinery is insisting on advance payment from marketers before they could lift petroleum products.
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After crashing petrol prices, Dangote refinery imposes new conditions, marketers react
The marketers expressed mixed reactions, with some saying the new condition would put them in an awkward financial situation.
Others said they understand the position of the refinery as it is seeking to make a profit as a new establishment,
Source: Henzodaily.ng