Following the return of the naira-for-crude deal ordered by the Nigerian government, the Independent Petroleum Marketers Association of Nigeria (IPAMN) has warned oil dealers and importers against losses that may result from further price cuts.

The development comes as another independent marketer, SGR, crashed petrol prices to N899 per litre at its filling stations.

IPMAN predicts further price cuts

IPMAN’s national vice president, Hammed Fashola, asked marketers and importers to be cautious while purchasing petroleum products because Dangote Refinery and other players could slash prices further.

Legit.ng earlier reported that the mega refinery had slashed petrol prices to N865 per litre shortly after the Nigerian government ordered the return of the naira-for-crude deal. Analysts have attributed the latest price crash to the drop in global crude oil prices.

Dangote notifies marketers of new petrol prices

According to reports, notices to marketers by the Lekki-based refinery show that its PMS will now be sold at N865 per litre, including charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Dangote Refinery said that other products are still sold in dollars, while PMS sales via coastal vessels are on hold. The development has led to petrol stations adjusting their pump prices downward.

More filling stations slash prices

According to Punch reporting, about four SGR filling stations have dropped their petrol prices to N899 per litre, the cheapest along the Lagos-Ibadan Expressway and Sagamu-Ijebu Ode axis.

The current price is N16 below Dangote Refinery’s partner filling station, Heyden.

Most of the petrol stations in Lagos and Ogun State have also reduced their prices from over N940 to N930 or N920 per litre.

Heyden reduced its pump prices to N915 to reflect the slight reduction in ex-depot prices.

Legit.ng also reported that since December last year, the mega refinery has remained a dominant player in the petroleum downstream sector, changing prices in line with market dynamics.

Marketers refute claims of monopoly by Dangote

Reports say the refinery has broken the monopoly previously enjoyed by the Nigerian National Petroleum Company Limited (NNPC), which was the sole importer of petroleum products.

However, Fashola warned marketers and importers to be wary to avoid incurring losses and debts when the big players slash prices.

He said it would be good for consumers if Dangote and others lowered the prices of fuel, refuting claims that Dangote Refinery is dictating market prices.

He urged other industry players not to oppose the naira-for-crude deal over the perceived advantage to Dangote Refinery.