In a significant development that could bring relief to millions of Nigerians, oil marketers are predicting a nationwide drop in petrol prices following Dangote Refinery’s decision to start selling petrol directly to them in naira. This bold move is expected to boost competition and efficiency in the market, potentially driving down prices and benefiting consumers.
The Dangote Refinery, one of Africa’s largest refineries, has begun supplying petrol to oil marketers directly, bypassing the Nigerian National Petroleum Company Limited (NNPCL). This move is seen as a game-changer in the industry, as it allows the refinery to sell its products at a lower price, making them more competitive in the market.
According to sources, the Dangote Refinery has already slashed its petrol price to N865 per liter, making Nigeria’s fuel price the cheapest in West Africa and 13th globally. This significant price reduction is expected to have a ripple effect on the market, forcing other players to follow suit and reduce their prices.
The direct sales approach adopted by the Dangote Refinery is also expected to promote competition and improve market efficiency. By cutting out the middleman, the refinery can sell its products at a lower price, making them more attractive to consumers. This, in turn, could lead to increased sales and revenue for the refinery, as well as a more competitive market overall.
Some oil marketers have expressed optimism about the move, hoping it will lead to cheaper petrol prices. “This is a welcome development,” said one marketer. “We’ve been struggling to make ends meet, and this move could be the lifeline we need.”
However, others have raised concerns about the lack of transparency in pricing. “We need to know how the prices are determined,” said another marketer. “We can’t just take the prices at face value.”
The Federal Government has encouraged the direct sales approach, expecting it to improve the fuel supply chain and reduce prices. The government has also directed the full implementation of the naira-for-crude deal, which could further impact fuel prices.
As the situation continues to unfold, one thing is clear: the Dangote Refinery’s bold move has sent shockwaves across Nigeria, and the impact will be felt for a long time to come. Will this lead to cheaper petrol prices nationwide? Only time will tell, but one thing is certain – the market is about to get a lot more interesting.
