Fuel Prices Set To Drop as PETROAN Enters Supply Agreement With Dangote Refinery

Dangote Refinery and PETROAN Enter discussion towards lowering fuel prices

Nigerians can expect lower and stable fuel prices in the coming months as the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has entered a supply agreement with the Dangote Petroleum Refinery. This agreement will ensure stable market prices for the product as the marketers will get PMS from Dangote Refinery at the best prices possible.

He added that with the agreement, the Dangote Refinery is not expected to hike prices of petroleum products without consulting the association which will also be involved in monitoring price movement on the global market.

PETROAN calls for smooth transportation

The PETROAN president called on the government to fix the rail system to help improve the transportation of petroleum products across the different states and significantly reduce the cost of transportation. He commended the Dangote Refinery for the show of love in this agreement and told Nigerians to be optimistic about the new era, the LEADERSHIP reports. Gillis-Harry noted that Nigerians can expect uniformity in the prices henceforth, as transportation costs have been factored into the agreements.

PETROAN warns marketers against imported products

The PETROAN president also directed members to encourage local content policy and desist from putting pressure on the Foreign Exchange to buy imported petroleum products. Gillis-Harry assured that Nigeria was close to achieving self-sufficiency with the restreaming of the NNPC refineries in Warri and Port Harcourt, and the presence of other refineries like Edo and Aradel refineries.

He revealed that the newly inaugurated executive council of the Lagos state chapter of PETROAN have been charged to go all out against marketers engaged in the illegal adjustment of meters, adulteration and hoarding of products among others.

Dangote Refinery starts selling to marketers

The Dangote refinery started operations in January 2024 but did not start selling Diesel to marketers till February 2024, at which point, it introduced a minimum purchase of 1 million litres. The requirement had the marketers pooling orders to make the minimum order, and buying directly from the refinery, especially given the significant price differences.

When the refinery started PMS production, it soon started selling to willing marketers at a minimum order of 2 million litres. There has been a price war between the Dangote refinery and the NNPCL as both continue to offer lower prices to get more patronage.

Dangote Refinery sells cheap fuel at N890/litre

In related news, the Dangote Refinery recently crashed its fuel price from N950 per litre to N890 for bulk purchases. The company maintained that it only offers premium quality of its products, and they are suitable for all kinds of vehicles, engines and products. The condition to access the product at this price from the Dangote Refinery is a minimum purchase order of 2 million litres.

Credit: Ruth Okwumbu, Legit.ng