NIGERIANS Lament Bitterly As Filling Stations Sell Fuel At This AMOUNT; See New Rate Announced

Efforts to reduce petrol prices in Nigeria have faced significant hurdles, as many filling stations across the country continue to sell Premium Motor Spirit (PMS) at exorbitant prices exceeding N1, 000 per litre....Read Full Article >>➤

This has left countless consumers feeling frustrated and burdened by the high cost of fuel. Despite the notable price cuts implemented by major suppliers such as Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), the anticipated drop in pump prices has not been uniformly reflected at fuel stations.

Reports indicate that the primary cause of the price variation lies with independent marketers, who attribute the situation to unsold stock acquired at earlier, higher rates. These marketers explain that because they had purchased fuel at significantly higher prices prior to the reductions, they cannot immediately lower their selling prices without incurring financial losses.

However, they have assured the public that as soon as they clear their current stock, prices will align with the recent cuts implemented by the major suppliers.

The Dangote Refinery, in a move aimed at alleviating the financial burden on consumers, recently announced a reduction in its ex- depot price from N970 to N899. 50 per litre. The ex- depot price refers to the rate at which petroleum marketers purchase fuel from depots before distributing it to retail filling stations.

This reduction was expected to encourage a corresponding decrease in pump prices across the country. To ensure the widespread implementation of this price drop, the refinery collaborated with key distributors, including MRS Oil Nigeria. This partnership helped reduce pump prices at numerous stations to N935 per litre, a significant decrease from the previous rates, which exceeded N1, 000 per litre in some locations.

The NNPCL, another major player in the Nigerian oil sector, also took steps to lower fuel costs by reducing its selling price. The company’ s actions were intended to complement Dangote Refinery’ s efforts and stabilize the fuel market. However, despite these measures, many Nigerians have not yet experienced significant relief at the pump due to the lingering high prices charged by independent marketers.

Economic experts have pointed out that while the price reductions by major suppliers are a positive development, the real impact will only be felt when independent marketers adjust their prices accordingly.

They note that the situation underscores the complex nature of the Nigerian fuel market, where multiple players— including refineries, distributors, and retailers— affect pricing. Furthermore, they emphasize that government agencies responsible for monitoring and regulating the oil sector must play a more active role in ensuring that price reductions at the depot level translate into actual relief for consumers.

In addition to regulatory efforts, stakeholders in the sector have called for greater transparency and efficiency in the supply chain to prevent such disparities in the future. They argue that consistent monitoring and a robust distribution system are crucial for maintaining stable fuel prices. Until these issues are addressed, the average Nigerian consumer may continue to bear the brunt of high fuel costs despite the reductions announced by major suppliers.

In summary, while the price cuts by Dangote Refinery and NNPCL are commendable steps towards making petrol more affordable, challenges in the fuel distribution chain have hindered their immediate impact. It is hoped that once existing high- cost stock is exhausted, independent marketers will align their prices with the new, lower rates, ultimately providing much- needed relief to Nigerians.