Dangote, NNPCL Petrol Price War an Advantage to Nigerians, Says Rewane
Bismarck Rewane, managing director of Financial Derivatives Company, a consultancy firm says Nigerians will benefit more from the seeming petrol price war between Dangote refinery and Nigeria National Petroleum Corporation Limited.
This is as as fuel prices are expected to decline till June 2025, giving room for more economic stability.
Speaking on Channels Television, Rewane stated that the downward trend in petrol prices means “we might begin to see some stabilization” depending on what happens in the global oil and currency market.
This will offer a breather for Nigerians who are paying over triple to buy same litres of fuel two years after the removal of fuel subsidies that have kept prices artificially low.
“In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane said.
The economist also explained that Dangote Refinery’s reduction in the pump price of petrol was due to production cost efficiency, among other factors.
Recall, NNPC had reduced its petrol price to N860 per litre, which has begun to take effect at its retail outlets.
Although there is no official communication from the NNPC yet, some stations in Lagos adjusted their pumps to N860 per litre, down from N945 as of Sunday.
This comes a few days after the Dangote Refinery reduced its ex-depot petrol price from N890 to N825 per litre. This is the second price reduction in the new year, and the third one in a space of two months.
Dangote, in a public notice on the price slash, announced three filling stations in Lagos as its partner off-takers
They include MRS: N860 per litre; AP: N865 per litre; and Heyden: N865 per litre.
The reduction by NNPC, the country’s largest fuel supplier, has sparked a wave of competitive pricing among private marketers. And showing that petrol pricing are now being determined by the market as against the erstwhile pegging by the government..
