Amid rising competition and fluctuating fuel prices in Nigeria’s deregulated petroleum sector, oil and gas marketers have pledged continued patronage of Dangote Refinery despite the price disparity in the market.
Recent market changes saw Dangote Refinery increase the price of Premium Motor Spirit (PMS) to N955, causing pump prices at its affiliated stations to range from N935 to N970.
Similarly, the Nigerian National Petroleum Company Limited (NNPCL) adjusted its PMS price to N970, with some stations selling as high as N990.
Industry insiders attribute the volatility to global crude oil price shifts.
A source at Dangote Refinery suggested prices might drop if international crude costs decrease.
Over the weekend, the landing cost of imported PMS fell to N922.65 per litre, down from N943.75.
Marketers remain cautious, citing the unpredictable nature of the sector. “This is a dynamic market; prices change daily. It’s risky to switch suppliers when prices fluctuate,” a marketer explained.
Clement Isong, Executive Secretary of the Major Oil Marketers’ Association of Nigeria (MOMAN), echoed this sentiment, stating that the fragile market dynamics make it vital for marketers to maintain reliable partnerships.
Experts predict increased competition will drive market efficiencies, though weaker players may struggle.
“Deregulation will lead to fierce competition. Only businesses with strong management and viable models will survive,” one analyst noted.
