As predicted by industry analysts, Dangote refinery has reviewed downward its ex-gantry loading cost of Premium Motor Spirit (PMS) to N865 per litre, representing N15 reduction from the N880 per litre that marketers bought from its facility on Wednesday.
In a notice issued by the company to marketers on Thursday, the company informed the marketers of the downward review of the petrol pump prices.
It is anticipated that following the development MRS Oil & Gas, Ardova Plc, Heyden, and other filling stations, which enjoy direct refined products supply arrangements with the refinery would lower their pump prices before the day is over.
The slash in the pump price of petrol by Dangote Refinery is not unconnected with the confirmation by the Federal Government that the contentious naira-for-crude arrangement would be sustained in order to boost the nation’s local crude oil refining capacity.
The Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, made this disclosure after a meeting on Tuesday with industry stakeholders, including the representatives of the Dangote Refinery
The Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative confirmed the government’s position in a statement, stressing that the naira-for-crude deal is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, improve the nation’s energy security and reduce reliance on foreign exchange in the domestic petroleum market.
It assured the public that the initiative remained in effect and will continue for as long as it aligns with the public interest and supports national economic objectives”.
The statement released on the Federal Ministry of Finance’s X account partly reads: “The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.
“However, such issues are being actively addressed through coordinated efforts among all parties”, it added.
It would be recalled that Dangote Refinery had on March 19 this year announced the suspension of the company’s sale of refined petroleum products to marketers due to a stalemate in its discussions with the NNPCL’ management on the naira-for-crude initiative.