- Oil and gas marketers remain committed to Dangote Refinery despite ongoing price fluctuations in the dynamic petroleum market
- Marketers cautiously navigate price changes, recognizing the potential for further adjustments based on international crude oil trends
Oil and gas marketers have pledged continued patronage of the Dangote Refinery despite the ongoing price competition in the petroleum market.
Industry sources suggest that Premium Motor Spirit (PMS) prices might drop further if international crude oil prices decline.
Recently, Dangote Refinery raised the price of PMS from ₦899.50 to ₦955, increasing pump prices at its affiliated filling stations to between ₦935 and ₦970.
Similarly, the Nigerian National Petroleum Company Limited (NNPCL) adjusted its price to ₦970, with independent filling stations selling PMS between ₦970 and ₦990.
Over the weekend, the landing cost of imported PMS fell from ₦943.75 to ₦922.65 per litre. Despite these fluctuations, marketers are cautious about switching suppliers due to the market’s instability.
“This is a dynamic market. Prices change daily, so marketers must be careful in making decisions,” one marketer explained.
The Executive Secretary of the Major Energy Marketers’ Association of Nigeria (MEMAN), Clement Isong, affirmed that marketers would continue supporting Dangote Refinery.
“This market is fragile. Prices can rise or fall overnight. Decisions depend on global factors like the recent sanctions against Russia, which caused price spikes. Now, prices are starting to stabilize,” he said.
An industry expert, speaking anonymously, noted that deregulation is driving intense competition, which will ultimately reduce prices.
However, he warned that only efficient companies with robust management will survive. “Indiscriminate development of tank farms and unviable petrol stations will expose weak business models,” he added.
A source close to Dangote Refinery emphasized that landing costs are just part of the total price. “Other operational costs also contribute to the final price consumers pay,” the source noted.
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