Petrol Prices Fall As Market Competition Heats Up – IPMAN

Petrol Prices Fall As Market Competition Heats Up – IPMANThe deregulation of Nigeria’s downstream oil sector has started to drive a gradual decline in petrol prices, as reported by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other major oil industry players. The competition that deregulation has sparked among oil marketers is now pushing pump prices lower.....KINDLY READ THE FULL STORY HERE▶

This price reduction follows a surge in fuel imports, with the Nigerian National Petroleum Company Limited (NNPCL) and other operators bringing in over 2 billion litres of Premium Motor Spirit (PMS) within a span of 42 days. According to Chinedu Ukadike, the National Publicity Secretary of IPMAN, the recent deal between IPMAN and Dangote Petroleum Refinery is already playing a significant role in reducing petrol prices.

“The very announcement of our partnership with Dangote has led to a noticeable drop in prices by ₦10, ₦15 per litre. This price reduction is driven by increased competition, as independent marketers no longer have to buy from middlemen but will be purchasing directly from the producer,” Ukadike said in an interview with The PUNCH. “Before the end of the year, we expect prices to drop further. The drop we’ve seen so far is just the beginning.”

Ukadike pointed out that even before IPMAN started lifting products from Dangote, the mere discussions between the two parties had already resulted in a ₦10 reduction in fuel prices. “We haven’t even started fully, but the price drop is evident,” he added.

A major oil marketer, who spoke on condition of anonymity, also attributed the price decrease to the ongoing deregulation and the increasing competition in the sector. “While people may not immediately notice, the prices are indeed coming down, even without major announcements. Deregulation is fully in play, and competition is now the driving force,” the marketer said.

Though petrol prices in some locations remain above ₦1,000 per litre, slight reductions have been observed. For instance, at certain filling stations, the cost of petrol recently fell from ₦1,080 to ₦1,070 per litre.

However, the marketer cautioned against expecting a fixed, permanent price. “Don’t expect petrol to drop to ₦900 per litre, as that would be below cost. Prices will fluctuate, but it’s important to remember that a stable, fixed price isn’t realistic,” the source explained.

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