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Dangote refinery engineers new prices, reducing the cost per liter of gasoline.
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The competition began, with the Price War fierce competition between the Dangote Refinery and the Nigerian Petroleum Corporation Limited.
The price drop from #825 to #815 by the former outstanding figures of Dangote refinery has had a significant impact on the oil market.
This reduction is due to the reduction in the landing cost of fuel to N774.82 per liter, which is N50.28 lower than the N825 that previously loaded gantry at the Dangote Petroleum Refinery.
The Nigerian Daily Report collects that oil marketers are full of enthusiasm, bypassing private warehouse owners and starting to source products directly from Dangote refineries.
Daily reports confirmed the effectiveness of the news, and while the Dangote refinery officially announced a February 26 reduction in gasoline prices, the new pricing structure has not been announced publicly but has been quietly implemented.
This inspired the belief that there is an ongoing price war between the major players in the downstream oil sector in Nigeria, especially between the Danget Refinery and the Nigerian National Petroleum Corporation Limited.
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Therefore, the N10 price is expected to cause a reaction from private fuel warehouses, which may adjust its price to remain competitive in its market position.
In addition, the Nigerian Independent Petroleum Marketers Association (IPMAN) has some speculation that this decline may raise fuel prices to about N800 per liter.
Chinedu Ukadike said in his speech at the Ipman spokesperson news reporter:
“It’s true. Some people speculate that the prices of imported products are now lower. This is why the price war is.
“This is a deregulation beauty. Dangote has millions of liters and does not want any external force to take over its market share. So it will force prices to lower prices”
However, it has not been confirmed whether the price of the Dangot refinery will affect its retail price for sale at its fill stations such as MRS, which is still selling N860 in Lagos and Abuja.
Meanwhile, PunchOnline analysis reports show that the loading cost price of AA Rano Depot does not change to N830 per liter. Menj Depot also left his own stuff in N830. Bovas Depot sells its products on N826, Wosbab gives customers a price estimate of N831, while Aiteo’s price is N827 from N832 charged earlier this week. In an integrated warehouse for sale in N826, Rainoil Depot sells its products for N831 per liter.
This price war between refineries may be a benefit to end users, as the price of crude oil and market power are factors that affect gasoline prices.
