KEY POINTS
- Dangote consortium marketers have reduced their petrol gantry price by ₦25 to ₦1,215 per litre.
- Dangote Refinery has reduced its consortium membership from 37 marketers to 25.
- The impact of the latest price cut on depot and retail pump prices remains uncertain.
Marketers operating under Dangote Refinery’s consortium have reduced their petrol gantry price by ₦25 to ₦1,215 per litre, marking another adjustment in Nigeria’s downstream petroleum market.
The new price represents a 2.02 per cent reduction from the previous rate of ₦1,240 per litre. The cut comes as the refinery restructures its direct petrol distribution network and changes the arrangement under which participating marketers purchase its products.
The latest price adjustment follows Dangote Refinery’s decision to reduce the number of marketers in its consortium from 37 to 25 companies.
The new arrangement includes companies such as Techno Oil, Pivot, Integrated Energy, Soroman, Nipco, MRS, Ardova, Bovas, Optima, Nepal Energies, Mainland, NNPC, A.A. Rano, Rainoil, Pinnacle, AYM Shafa, Heyden, Eterna and Total, among others.
According to an industry source quoted by PetroleumPrice.ng, the refinery reduced the number of participating companies following concerns about the pricing activities of some members of the previous consortium.
The restructuring is part of efforts to reorganise its direct distribution network and adjust how petrol is supplied to selected marketers.
Refinery Reviews Petrol Pricing Model
The changes to the consortium have coincided with adjustments to Dangote Refinery’s petrol pricing mechanism.
The refinery initially used an EBOB-based pricing model, which linked its petrol selling price to a five-day average of the European gasoline benchmark.
It later moved to fixed gantry pricing before returning to the EBOB-based model for petrol sales.
Automotive gas oil, commonly known as diesel, continues to operate under a fixed gantry pricing arrangement.
The latest reduction by consortium marketers adds another development to the refinery’s changing pricing structure.
The reduction to ₦1,215 per litre could influence prices across the downstream distribution chain, but its effect on depot and retail pump prices will depend on how the adjustment is passed on by other market participants.
The change in gantry price does not automatically mean that filling stations will immediately reduce their pump prices by the same amount.
The extent of any reduction at retail outlets will depend on distribution costs and pricing decisions by depot operators and marketers.
