Petrol prices have crashed drastically in the last three weeks from N1,200 to N1,025 per litre, following intense competition in the market.
Findings show that Major Energy Marketers Association of Nigeria (MEMAN) outlets such as MRS, AA Rano, Conoil and other filling stations have drastically slashed their petrol prices.
This development comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed recently that its members hope to lift petroleum products from the newly refurbished Port Harcourt refinery.
Also, the Dangote Refinery and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have continued dialogue to conclude details for lifting fuel at the refinery.
The Nigerian National Petroleum Company Limited (NNPC) owns the Port Harcourt Refinery, which began operations in November and is said to be operating at 70% capacity.
IPMAN’s public relations officer, Chinedu Ukadike, said the refinery supplies only NNPC retail outlets and a few marketers.
He explained that independent marketers expect to load products from the refinery with the anticipated increase in the supply of petroleum products.
The IPMAN spokesman said that marketers are now lifting petroleum products directly from the Dangote Refinery after reaching a deal with the facility’s management and the refinery’s decision to reduce the minimum bulk purchases for marketers to two million litres of petrol.
Vanguard reports that Ukadike said that, due to the reduction, IPMAN members can now access petrol from the Lekki-based refinery.
The IPMAN chief stated that accessing products directly from refineries has made the market more competitive as independent marketers can now compete with major marketers.
According to reports, Ukadike stressed that competition in the market has just started, saying that with the crash in the naira exchange rate, pump prices will also crash further in the coming weeks.
TimesNow.com.ng earlier reported that the Dangote Refinery and PETROAN were discussing lifting petroleum products from the facility.
Billy Gillis-Harry, PETROAN’s president, led the association in negotiating and signing a deal with the $20 billion refinery.
The move indicates increased interest in the products from the 650,000bpd refinery, as members of the Major Energy Marketers Association of Nigeria (MEMAN) and IPMAN have promised to purchase them.
Analysts have predicted a further crash in petroleum product prices as competition intensifies among marketers and the Port Harcourt and Dangote refineries.
Adeola Yusuf, energy policy analyst, said the coming on-stream of the Port Harcourt Refinery is a sign of good things to come because it will deepen competition, and consumers will benefit from it.
TimesNow.com.ng previously reported that the Dangote refinery insisted on advance payment from marketers before they could lift petroleum products.
The marketers expressed mixed reactions, with some saying the new condition would put them in an awkward financial situation.
Others said they understand the refinery’s position as it is seeking to make a profit as a new establishment.
