Dangote Refinery: Fuel marketers consider petrol price cut as FG meets stakeholders

Fuel marketers are considering a possible reduction in petrol prices following a N25 per litre cut in the gantry price by Dangote Refinery, as the Federal Government prepares to meet key players in the petroleum sector.

The Federal Government on Monday announced plans to hold a consultative meeting with refiners, depot owners, marketers and retailers to discuss competitive pricing of petrol and other petroleum products in the interest of Nigerians.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement issued by its spokesperson, George Ita-Ene, said the meeting would take place on Tuesday in line with provisions of the Petroleum Industry Act and the Federal Competition and Consumer Protection Act.

The planned meeting comes amid a sharp increase in petrol prices, with the product currently selling for between N1,395 and N1,450 per litre in Abuja and other parts of the country.

The development coincided with a decline in global crude oil prices, with Brent crude and West Texas Intermediate (WTI) falling by more than three per cent to $100.50 and $92.43 per barrel respectively, at the time of reporting.

In response to the decline in crude prices, Dangote Refinery on Monday announced a N25 per litre reduction in its gantry price, bringing it down to N1,325 per litre.

The latest reduction ended more than two weeks of consecutive increases in petrol prices and could trigger a downward adjustment in pump prices across the country as marketers review their pricing options.

Speaking in an exclusive interview with DAILY POST, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said a reduction in petrol prices could not be ruled out following Tuesday’s consultation involving the NMDPRA, the Federal Competition and Consumer Protection Commission (FCCPC) and other stakeholders.

Gillis-Harry, however, dismissed the possibility of petrol being sold at N500 per litre, as demanded by some civil servants, describing such a price as unrealistic under current market conditions.

He said PETROAN and other stakeholders would continue to prioritise the interests of Nigerians, but would not take measures that would put their businesses at risk.

“Nigerians will always have the best from every one of us. The only thing, we will not do it at our detriment, because we can’t go out and do it. But we will always do what we must have to do to give the best for the Nigerian,” he said.

On the N500 per litre demand, Gillis-Harry said, “N500 per litre fuel price is not possible to happen. Unless we are talking about just destroying the country again, with subsidies that will not pay anybody.”

He added, “Those demanding N500 per litre fuel should go and build their refinery and get their logistics, and get their retail outlets to sell at N500 per litre.”

Meanwhile, civil servants under the Joint National Public Service Negotiating Council have written to President Bola Tinubu, asking the Federal Government to either reduce the petrol pump price to N500 per litre or increase the minimum wage to N500,000.