Oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have predicted pump price reduction to N950 per litre in Lagos State and N990 in the Federal Capital Territory (FCT).

The marketer's projection comes following a decision by Dangote Refinery to lower its ex-depot price of Premium Motor Spirit (PMS) to N899.50 per litre.

The new Dangote petrol price is a 7% reduction from the previous rate of N970 per litre.

Speaking to journalists, IPMAN National Publicity Officer, Chief Chinedu Ukadike, said the reduction is expected to cascade through the supply chain, Punch reports.

Ukadike explained: “Once there is a price reduction, it will trickle down.

The pump price will be less than N1,000, with logistics costs influencing the final rate." He added that while Lagos residents might see prices around N950 per litre, Abuja consumers could pay slightly more due to transportation costs.

Abubakar Maigandi, IPMAN Chairman, said the reduction would lower costs across sectors and provide much-needed relief to Nigerians.

Similarly, Vanguard reports that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has welcomed Dangote's price reduction.

Billy Gillis-Harry PETROAN, National President, lauded Dangote Refinery for its efforts to reduce the cost of living during the festive period.

He said: “The reduction in petrol prices demonstrates the benefits of competition in the downstream sector."