Dangote Petroleum Refinery has reduced its ex-depot price for premium motor spirit (PMS), also known as petrol, to N840 per litre.
The reduction represents a N40 decrease from the previous rate of N880 per litre.
Five days before the reduction, the Nigerian National Petroleum Company (NNPC) Limited had increased the pump price of petrol to N925 per litre in Lagos.
The decrease also came a week after Dangote refinery increased the ex-depot petrol price to N880 per litre.
In an update on Monday by Anthony Chiejina, chief corporate communications officer of Dangote Group, Dangote refinery announced the price slash.
The development follows a recent downward trend in global oil prices, with Brent crude oil falling by 1.54 percent from $68.67 on June 23 to $67.61 before the close of business today.
On June 15, the refinery said it will begin the nationwide distribution of diesel and petrol on August 15.
The refinery said it also acquired 4,000 new compressed natural gas (CNG)-powered tankers to enhance its fuel distribution capacity across the country.
Reacting to the move, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the refinery’s forward integration adoption could lead to a monopoly in disguise and might cause significant job losses in the downstream sector.
On June 19, the Major Energies Marketers Association of Nigeria (MEMAN) also called for clarity on Dangote refinery’s proposal for nationwide logistics for petrol and diesel distribution.
The Dangote Group, on June 29, said its nationwide petroleum products distribution scheme will save Nigerians over N1.7 trillion annually.
The company said it has invested over N720 billion in 4,000 CNG-powered trucks for distribution.
