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Petrol prices are set to drop to N935 per litre as Dangote Refinery reduces its ex-depot price to N899.50. IPMAN announces the new pricing structure, citing deregulation and increased refinery activities as key factors. The initiative promises uniform pricing, boosting affordability and competition in Nigeria's downstream petroleum sector.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a significant reduction in the price of petrol, with a new rate of N935 per litre set to take effect by Monday. This shift follows a recent price adjustment by Dangote Refinery, which has lowered its ex-depot price for fuel, marking a key development in Nigeria’s energy sector.

Dangote Refinery recently slashed its fuel price by 7.27 percent, cutting the ex-depot price from N970 to N899.50 per litre for oil marketers. This move is part of a broader effort to streamline fuel pricing across the country, ensuring that all marketers adhere to a uniform pricing structure. According to IPMAN President Alhaji Maigandi Garima, this new arrangement will benefit marketers and consumers alike by offering more predictable fuel costs.

Garima explained that the fixed ex-depot price of N899.50 per litre will allow marketers to purchase fuel at a consistent rate, easing supply chain challenges and reducing price fluctuations. "The new arrangement reflects a significant reduction from the previous ex-depot price of N970 per litre," he said. He also praised Dangote Refinery for the timing of the price cut, particularly during the festive season when demand for fuel typically surges.

This price decrease is part of a broader push toward deregulation in Nigeria’s downstream petroleum sector, which, according to Garima, has encouraged healthy competition and led to a gradual decline in fuel prices. He also expressed optimism that the increasing participation of private refineries in the market will further drive prices down shortly.

Reflecting on the previous year, Garima noted that petrol prices in some parts of the country were as high as N2,000 per litre due to reliance on imported fuel. However, with functioning local refineries, prices in many regions have now been capped at N1,100 per litre, showcasing the positive impact of domestic refining capacity on price stability.