*Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, acknowledges as both the NNPCL Limited and Dangote Petroleum Refinery have continued to reduce the cost of the Premium Motor Spirit, also called petrol, the ongoing price war between the two companies will benefit energy consumers more till June 2025

Isola Moses | 绿帽献妻

As the ongoing fuel price war between Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited (NNPCL), the development will benefit energy consumers more.

绿帽献妻 reports Mr. Bismarck Rewane, Managing Director of Financial Derivatives Company Limited (FDL), Lagos, Tuesday, March 4, 2025, projected that the cost of Premium Motor Spirit (PMS), otherwise known as petrol, will continue to decline until June this year.

 

Bismarck Rewane, Managing Director of Financial Derivatives Company Limited

Both Dangote Refinery and the NNPC Limited have reduced the retail cost of PMS in recent weeks, easing off the socio-economic pressure on millions of Nigerian consumers.

The Dangote Refinery recently reduced its gantry price from N890 to N825 per litre.

The company also promised to refund energy consumers, who had bought fuel at higher prices from its key partners in the country.

The NNPC Limited equally, followed suit by announcing its聽 N860 per liter of petrol in Lagos.

Speaking while featuring on the Channels TV ‘Business Morning Show’ programme aired Tuesday, and monitored in Lagos, Rewane explained the recent crash in the pump price of the petroleum product is expected to continue until mid-year 2025.

The expert stated: 鈥淪o, generally between now and June, we will see prices begin to decline.

“But after June as things stabilise, depending on what happens in the global oil and currency market, we might begin to see some stabilisation.”

Fuel price leadership in Nigeria to emerge by June, says Rewane

In regard to who actually wins in the ongoing competition and price war for increased market share in the downstream petroleum sector of the Nigerian economy, Rewane acknowledged both the NNPCL and Dangote Refinery have reduced the cost of the essential commodity thus far.

According to him, the price war between Dangote Refinery and NNPCL will benefit the consumer more.

The expert further opined: 鈥淚n a price war, nobody wins, the consumers win in the short run then eventually the market goes back to where it should be.

“But, at the end of the day, between now and June, the price leadership will be firmly established.”

Why Dangote Refinery crashed retail cost of PMS?

Rewane, Managing Director of FDL, further attributed Dangote Refinery鈥檚 reduction in the pump price of petrol to production cost-efficiency, among other factors in the global oil market.

Interestingly, as the Dangote Petroleum Refinery reduced its gantry price from N890 to N825 per litre lately, the company as well pledged to reimbursed consumers, who bought fuel at higher prices from its key partners.

The Management of Dangote Petroleum Refinery stated: “For MRS Holdings stations, it will sell for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East respectively.

鈥淭he same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East.鈥�

The NNPCL Monday, also reduced its pump price to N860 per litre across its stations in Lagos State.

However, the state oil company is yet to officially issue a statement to that effect, according to report.[.

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