The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has commended the Dangote Petroleum Refinery & Petrochemicals and the Nigerian National Petroleum Company Ltd (NNPCL) for reducing the price of Premium Motor Spirit, also known as petrol.
Dangote Refinery recently slashed the price of PMS for the second time this month. The company cut N65 off the previous price of N890, bringing it down to N825 per litre at the gantry (ex-depot). Dangote also agreed to refund ₦65 to retail outlet owners affected by the price reduction.
Similarly, the NNPCL slashed the price of PMS from ₦920 to ₦875 per litre.
In a statement on Monday, PETROAN’s National President, Dr. Billy Gillis Harry, praised the two companies and expressed hope that the move will help to alleviate the financial burden on Nigerians amidst the high inflation.
The statement, signed by the association’s national Public Relations Officer, Dr. Joseph Obele, quoted Harry as saying that “this price reduction will be a huge relief to many Nigerians struggling to make ends meet.”
The statement added: “The reduction in PMS price is expected to positively impact Nigerians in: Decreased transportation costs: With lower PMS prices, transportation costs will decrease, making it easier for people to commute and transport goods.
“Reduced food prices: Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food.”
PETROAN’s President particularly hailed Dangote Refinery for agreeing to refund ₦65 to retail outlet owners affected by the price reduction.
“This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre.
“According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund. The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price.
“Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare. The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds.
“Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses. We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members.”
He called on Nigerians to be optimistic as government reforms are yielding results.