Victor EzejaMixed reactions from Nigerians have trailed news of the reduction of fuel price by Dangote Refinery. While some commended the refinery for the gesture, others said the margin of price reduction is insignificant.
Prime Business Africa reports that Dangote Refinery on Thursday announced a drop in price of Premium Motor Spirit (PMS) also known as petrol produced by the company from N970 to N899.50k per litre.
Join our WhatsApp ChannelA statement signed by Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, said the move is to help provide the much-needed relief to Nigerians ahead of the Yuletide season holiday.
Recall that the refinery had on November 24 lowered the price of petrol to N970 per litre from about N998.
“This reduction is designed to ease transport costs during the festive period,” part of the statement read.
“To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM,” Chiejina further stated.
Reacting to that, some social media users said it is an evidence of healthy competition in a free market. “This is good news, competition is really working,” an X user, @EkpedemeUkpong stated.
Others who believe the latest price reduction is part of the outcome of deregulation of the PMS market, expressed optimism that it will further drop.
@Lekan_mk wrote, “Interesting days ahead, I’m loving this honestly. A willing buyer willing seller market .”
@OgbeniObSugar stated: “Can we now see the competition in our fuel prices? That’s why Monopoly is not too good. Effect of NNPCL. We’re getting there gradually. Naija go better. E GET WHY.”
“This is what they meant when they said full deregulation and privatization leads to competition and better micro-economics. See Dangote hustling, see marketing moves. Just add about two more big players and we can trust the dynamics of supply and demand fully,” @Tobienoch remarked.
However, for former lawmaker who represented Kaduna Central district at the National Assembly, Senator Shehu Sani, the reduction doesn’t matter to Nigerians anymore because they are already exhausted.
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“People are so exhausted even if petrol is reduced by N50 they just look and move on,” Sani wrote.
Another X user, Abba Alkali with handle @abbaalkali, said the amount removed from the previous price is just like a drop in the ocean and would not get people excited as the cost of things including transport remains the same. “With everything going on, it’s hard for people to get excited about a small reduction. It’s like a drop in the ocean, right? Maybe bigger changes are needed to really make a difference,” Alkali stated.
“Until fuel price is reduced to the lowest price that meet the level of a country that produce crude oil and also refine it, the exhausted Nigerians will never appreciate any minimal fuel price reduction,” another X user, John Emmanuel wrote.
Mal Bello said the price reduction will only make sense if the reduction is up to 50%.
Some netizens advised Dangote Group to invest in opening retail outlets across Nigeria to be able to sell directly to the consumers.
“@DangoteGroup don’t you think having pump station across the nation will also improve your sales? Rather than waiting on Marketers alone to come buy your products, sell directly to the people. You’ll see how the competition will improve, @IamAyorent wrote.
“Dear @DangoteGroup @AlikoDangote can you go into franchise. There are lots of filling stations that have been dormant for months and years. Why not go into a partnership deal with them and distribute your product at your cost, this will create competition and force others to you,” @Saintedhumour advised the company.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
