Why Nigerian marketers cut fuel price – Dangote Refinery

Dangote Refinery has explained that the recent drop in the pump price of premium motor spirit (PMS) by Nigerian petroleum products marketers nationwide is linked to itself.

The company, in a statement on Monday, clarified that the fuel price reduction was not due to the recent suspension of the 15 per cent import duty tariff by the federal government.

The 650,000-barrel-per-day refinery stressed that the recent fuel price drop was due to its gantry price cut to N828 per litre from N877.

“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 oil firm stated.

However, the spokesperson of the Independent Petroleum Marketers Association of Nigeria has linked the recent cut in petrol price to the easing of tension in the downstream sector due to the federal government’s suspension of the 15 per cent import duty.

Recall that the federal government suspended its 15 per cent import duty on petrol and diesel, which was intended to support Dangote Refinery.