…Fuel marketers panic, cancel orders from abroad
?angote Petroleum Refinery has reduced the ex-depot price of its premium motor spirit (PMS), also known as petrol, to ?899.50 per litre, causing fear and anxiety among petroleum marketers.
The Group Chief Branding and Communications Officer, Anthony Chiejina, who announced the development in a statement on Thursday, said, “?angote Petroleum Refinery has reduced the price of its Premium Motor Spirit (PMS) product to below ?900 per litre, in order to provide much-needed relief for Nigerians ahead of the holiday season.
“Africa’s first privately-owned oil refinery, which previously lowered the price to ?970 per litre on November 24, has now announced a new price of ?899.50 per litre”, he added, saying the reduction is designed to alleviate transport costs during the festive period.
He further said the company also introduced a special offer to further benefit consumers. In addition to the holiday discount, the spokesperson said consumers will be allowed to purchase one extra litre of fuel on credit for every litre bought on a cash basis.
“To alleviate transport costs during this holiday season, ?angote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry, or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank”.
Chiejina also underlined the refinery’s commitment to ensuring Nigerians have access to ‘premium quality’ petroleum products that are competitively priced, as well as environmentally and engine-friendly.
The spokesperson said the refinery’s operations marks the end of Nigeria being a dumping ground for sub-standard and ‘blended’ imported products, which have presented significant hazards to human health, machinery, and the environment.
Meanwhile, it was gathered that the development has created confusion in the camp of fuel marketers who have pending orders with international oil traders and foreign refineries.
Sources in the nation’s downstream oil and gas sector informed our correspondent that members of Major Energies Marketers Association (MEMAN), especially those hell-bent on importing PMS despite several outbursts by the President of Dangote Industries Ltd., Aliko ?angote, that marketers have been boycotting his products, are considering cancelling the orders yet to be fulfilled and loaded on ocean-going tankers, in an effort to cut losses.
According to a source in the oil and gas industry who did not want his identity revealed, “As of Monday, December 16, 2024, the landing cost of a litre of petrol is ?971. That means we can expect marketers, after adding their own margins, to sell at the pump from ?915 to ?950, depending on the company and location.
“While it is too early to speculative on the full impact of the price slash by ?angote on marketers as I don’t have the complete picture of things to make definite judgement, I think it is safe to say that they (marketers) are in trouble. Being a powerful cartel, I believe they will weather the initial storm by keeping the pump prices of PMS at the current rates until they exhaust their old stocks.
“However, it will be foolish and suicidal on their part to continue to import fuel from abroad, as they only have a window of two weeks maximum to retain their current rates before the backlash from Nigerians and regulating agencies will start coming. This is a good development for the country. We are on a slow but sure road to recovery”, he stated.
Recall that MEMAN had in its competency centre daily energy bulletin released on Monday, put the estimated cost of landing petrol on Nigeria’s shores at ?971.57, compared to ?903.64 per litre in October and ?945.63 in September 2024.
