Why fuel price reduced — Dangote Refinery

Dangote Refinery has attributed the recent reduction in the pump price of Premium Motor Spirit (PMS) by petroleum marketers across the country to its own price cut, dismissing claims that the adjustment was driven by the federal government’s suspension of the 15 per cent import duty on fuel.

In a statement issued on Monday, the refinery clarified that marketers’ decision to lower pump prices followed its downward review of PMS gantry and coastal prices.

“Dangote Petroleum Refinery clarifies that the recent reduction in PMS pump prices by oil marketers was a direct response to our price cut on November 6. It was not caused by the temporary reversal of the 15% import tariff.

“We reduced our PMS gantry price from N877 to N828 and coastal price from N854 to N806, and marketers adjusted afterwards,” the company said.

But the Independent Petroleum Marketers Association of Nigeria (IPMAN) holds a different view.

Its spokesperson linked the drop in petrol prices to the federal government’s suspension of the 15 percent import duty, saying the move eased pressure in the downstream sector.

Recall that the federal government recently halted the planned import duty on petrol and diesel, a tariff initially introduced to support operations at the Dangote Refinery.

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