Fuel Prices Set to Drop Further as Government, Dangote Refinery, Marketers Reach Agreement

Stakeholders in Nigeria’s downstream petroleum sector, including Dangote Refinery, depot owners, and fuel marketers, have agreed to further reduce the pump price of premium motor spirit (PMS) following a meeting with the federal government.

The meeting, held in Abuja with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), focused on cost-reflective pricing amid falling global crude oil prices.

NMDPRA chief executive, Rabiu Umar, stressed that petrol prices should decline in line with Brent crude, which currently trades at $72 per barrel.

Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that prices would drop below current levels of ₦1,150–₦1,299 per litre in Abuja and surrounding areas.

He noted that if crude prices continue to fall, petrol could reach ₦1,000 or less per litre nationwide.

However, Gillis-Harry cautioned that marketers cannot be compelled to sell below cost, stressing that fuel pricing is driven by international market forces.

“Nobody is going to run a business at a loss. The true cost-reflective price is still determined internationally,” he said.

Abubakar Maigandi, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), echoed this position, adding that Dangote Refinery and depot owners remain committed to gradual price reductions.

Recent adjustments have already seen pump prices fall by at least ₦100 per litre in the past three weeks, with NNPC Limited cutting its price to ₦1,150 per litre.

Major filling stations such as MRS, AA Rano, Ranoil, and NIPCO now dispense fuel between ₦1,191 and ₦1,240 per litre.Stakeholders agreed that while prices will continue to decline, the pace of reduction will depend on volatile global crude markets.

Click to signup for FREE news updates, latest information and hottest gists everyday

Advertise on NOP NIGERIA to reach thousands of our daily users