Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria has welcomed the recent reduction in the ex-depot price of Premium Motor Spirit by Dangote Refinery, describing it as a move that will ease the financial burden on Nigerians and positively influence the country’s economy.
,PETROAN’s spokesperson, Joseph Obele, issued a statement on Saturday in response to the refinery’s decision to lower its ex-depot petrol price from N950 per litre to N890 per litre.
Dangote Refinery, while announcing the adjustment, attributed the price cut to a decline in global crude oil prices.
“This strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices,” the refinery stated.
Reacting to this development, PETROAN’s National President, Dr. Billy Gillis-Harry, commended the management of Dangote Refinery for the price reduction, emphasizing its potential to reduce the cost of living, transportation expenses, and stimulate economic growth.
“Dr. Billy Gillis Harry, the National President of PETROAN, commended the management of Dangote Refinery for the reduction of PMS ex-depot price from N950 to N890.
“According to him, this price reduction will alleviate the suffering of Nigerians, reduce the cost of living and transportation, and have a positive impact on the economy.
“PETROAN national president reaffirmed his previous position that competition is the beauty of a deregulated economy. He expressed optimism that other operators of refineries and importers of PMS will reciprocate by reducing the current selling rate of PMS for them to remain in business.
“The reduction in PMS ex-depot price is expected to have a far-reaching impact on the lives of Nigerian citizens. With a decrease in the cost of petrol, the prices of goods and services are likely to decrease, leading to a reduction in the overall cost of living.
“This, in turn, will provide relief to households, who will have more disposable income to allocate towards other essential needs.
“The reduction in PMS price will also have a positive impact on the economy. A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost.
“Additionally, the reduction in PMS price will lead to an increase in demand for goods and services, which will have a positive impact on economic growth and development.
“Furthermore, the reduction in PMS price will also have a positive impact on the country’s inflation rate.
“A decrease in the cost of petrol will lead to a decrease in the cost of production, which will, in turn, lead to a decrease in the prices of goods and services.
“This will help to reduce the country’s inflation rate, making life more affordable for Nigerian citizens and increasing their purchasing power,” the statement reads.
This development comes months after Dangote Refinery had raised its ex-depot PMS price from N899 to N950 per litre in January 2025.
Interestingly, just six days ago, DAILY POST predicted that declining global crude prices would influence domestic fuel costs.
However, while fuel price hikes typically lead to an immediate surge in the cost of goods and services, price reductions often take longer to reflect in the Nigerian market.
At present, Nigerians are contending with headline and food inflation rates of 34.80 percent and 39.83 percent, respectively, as recorded in December 2024.
