Major downstream players Ardova Plc and MRS Oil Nigeria Plc, partners of Dangote Refinery, have reduced petrol prices to N865 per litre, making it the cheapest option amidst calls from PENGASSAN for further reductions

[dropcap]N[/dropcap]igeria Fuel Price Drop has been observed at selected filling stations, as major downstream players, Ardova Plc and MRS Oil Nigeria Plc, both retail partners of Dangote Refinery, have reduced the pump price of petrol to N865 per litre at their stations.

Also read: Dangote Refinery to begin free nationwide fuel distribution August 15

This new price represents a N5 reduction from the previous N870 per litre, once again positioning Dangote Refinery’s partner stations as offering the most affordable fuel.

According to Ajumoke, a petrol attendant at an MRS station, the new price was implemented on Monday, June 16, following instructions from their headquarters.

Other Dangote partners, including Technooil, Optima Energy, Hyde, and Heyden, have also adjusted their prices.

In contrast, Nigerian National Petroleum Company (NNPC) Limited retail stations are still selling at N870 per litre, while Mobil filling stations have slightly reduced their price from N875 to N870.

This retail price reduction by MRS and Ardova coincides with Dangote Refinery’s own move to lower its ex-depot price for petrol to N838 per litre on Monday, down from N840 per litre last week.

If you look at the PLAT cost per cubic metre of PMS and convert that to litres in our local currency, with crude oil at $60 per barrel, petrol should realistically be selling between N700 and N750 per litre.

The ex-depot price is the price at which the product is sold by the refinery or depot to marketers before transportation to retail outlets.

Despite these reductions, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) maintained on Monday that petrol should ideally be priced even lower, between N700 and N750 per litre.

Festus Osifo, the association’s president, argued that despite global crude oil prices falling to around $60 per barrel, petrol prices at retail stations have remained disproportionately high.

“If you look at the PLAT cost per cubic metre of PMS and convert that to litres in our local currency, with crude oil at $60 per barrel, petrol should realistically be selling between N700 and N750 per litre,” Osifo stated.

He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a transparent pump pricing template to ensure fair pricing for consumers.

Earlier reports indicated that Dangote Refinery plans to begin direct nationwide fuel distribution, a move that could significantly alter the downstream sector.

Also read: Dangote refinery cuts petrol prices by ₦15 nationwide

This strategy aims to bypass traditional depots and middlemen, potentially reducing their dominance and further influencing fuel supply and distribution across the country.