There is hope for a drop in petrol prices in Nigeria as the Dangote Refinery has resumed loading of premium motor spirit (PMS) to petroleum marketers across the country. This development is expected to ease the ongoing fuel supply challenges and bring relief to millions of Nigerians facing high pump prices.
On Monday, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, confirmed that members of the association have started loading petrol at the Dangote Refinery, located in Ibeju-Lekki, Lagos.
According to Maigandi, petrol is currently being loaded at ₦877 per litre, an increase from the previous ₦820 per litre, but he assured that the increased supply will drive down pump prices due to improved availability.
“Our members have started loading at the Dangote Refinery at ₦877 per litre, up from ₦820. We are expecting that with the availability of the product, the price would drop a little bit. I can’t say how much a drop is expected, but there would be a reduction in price,” he said.
Also speaking on the development, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the resumption of supply from the Dangote plant would bring stability to the market.
“Whenever there are enough petrol products from Dangote Refinery or from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the country should be wet enough to guarantee affordability,” Gillis-Harry said.
Fuel prices had recently climbed to between ₦940 and ₦965 per litre across many filling stations in the country. This increase, which started in early October, was blamed on supply disruptions and a temporary halt in loading operations at the Dangote facility.
In many parts of Nigeria, long queues returned to filling stations as motorists struggled to buy fuel. Transport costs and prices of goods also went up due to the hike in fuel prices.
Last week, Devakumar Edwin, Vice President of Dangote Industries, revealed that more than 310 million litres of petrol had been billed for loading at the company’s refinery. This large volume is now being released to marketers and is expected to boost fuel availability in the country.
The 650,000-barrel-per-day Dangote Refinery, the largest in Africa, began operations earlier this year with the goal of reducing Nigeria’s heavy reliance on imported fuel. The refinery is expected to meet Nigeria’s entire domestic fuel demand and eventually export to other West African countries.
The refinery had earlier supplied some products but experienced delays in full petrol distribution due to technical adjustments and logistics.
Nigeria, despite being one of the world’s top oil producers, imports most of its refined petroleum products due to poor performance of its state-owned refineries. This has made the country vulnerable to global oil price fluctuations, foreign exchange challenges, and high import costs.
The entry of Dangote Refinery into the market has been widely seen as a potential game changer. However, recent supply disruptions and initial price increases led to public frustration and criticism.
Now, with resumed loading and expectations of steady supply, fuel prices may soon drop to more affordable levels.
