Strong indication has shown that both Dangote Refinery and fuel marketers are very reluctant to drop price of PMS below N1,000 upon the sustained drop in the global price of crude oil.
Analysts say ordinarily, with the price of crude oil below $80, prices of refined products in Nigeria especially PMS is supposed to be well below N1,000 but due to poor regulatory intelligence and price monitoring capacity, the relevant agencies of the government have remained adamant.
Recently, the Dangote Petroleum Refinery has reduced its ex-gantry price of Premium Motor Spirit, popularly known as petrol, from N1,125 per litre to N1,075 per litre.
The latest adjustment represents a N50, or 4.4 per cent, reduction from the previous price and is expected to further intensify competition in Nigeria’s downstream petroleum sector.
The new N50-per-litre ex-gantry price reduction marks the second cut within seven days, bringing the price down from N1,175 to N1,125 per litre and now to N1,075 per litre.
Whereas the refinery has aligned its coastal loading price with the ex-gantry price at N1,075 per litre, effectively removing the earlier price differential between coastal and gantry sales, several marketers have remained silent in further reducing their prices.
