Dangote cuts petrol price to N970 for marketers, IPMAN takes cue

FG backs NNPC/FIRST E&P JV’s 100,000bpd target

To ease the burden of fuel costs as the year winds up, Dangote Refinery has announced a reduction in the price of Premium Motor Spirit (PMS), also known as petrol, by N20 from N990 per litre to N970.

Meanwhile, the Federal Government, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, yesterday, reaffirmed its support for the Nigerian National Petroleum Company Limited (NNPCL) and FIRST Exploration & Petroleum Development Company Limited (FIRST E&P) Joint Venture (JV) in achieving its target of producing 100,000 barrels per day (bpd).

The Group Chief Branding and Communications Officer for Dangote Group, Anthony Chiejina, disclosed the new price in a statement yesterday. He described the development as a gesture of gratitude to Nigerians for their unwavering support in making the refinery a reality and to the government for its continued backing.

With the drop in the price of crude oil, the cost of PMS is supposed to drop slightly.

“As the year ends, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a dream come true. In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective well-being,” Chiejina stated.

The refinery, which commenced operations earlier this year, has been pivotal in reshaping the country’s downstream petroleum landscape. Chiejina emphasised that the price change would not affect the quality of its products and its environment-friendly disposition, while it works to address Nigeria’s fuel supply challenges.

“We are determined to keep ramping up production to meet and surpass our domestic fuel consumption, thus dispelling any fear of a shortfall in supply,” he added.

In the same vein, the Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the reduction, highlighting its significance in a competitive market.

IPMAN President, Shettima Maigandi, told The Guardian, that the move by the refinery reflected the evolving dynamics of the industry and showed that they were operating in a competitive market, a positive development for marketers and consumers alike. He assured Nigerians of a slash in price after getting the reduction from the refinery.

“The price cut is good information for independent petroleum marketers. Now, we have a good product that we can discharge in our filling stations and sell to the Nigerian masses. We are also going to cut our prices immediately we start taking the reduction in price of the product from Dangote refinery,” he said.

LOKPOBIRI stressed that by meeting the 100,000bpd target, the JV would help the Federal Government achieve its production goal of 2.5mbpd target by 2025.
The minister made this affirmation during a comprehensive engagement with the JV, which included a tour of its offshore drilling and production facilities in the Niger Delta designed to provide him firsthand insight into the JV’s operations and underscore its contributions to Nigeria’s energy security and transition goals.

He further commended FIRST E&P for its role in the country’s recent achievement of 1.8mbpd, highlighting the strategic significance of the company’s operations to national growth.

Commending the JV’s host communities for fostering a peaceful and supportive environment that allowed the company to operate smoothly, Lokpobiri urged continued collaboration, highlighting that their support was key to increasing production and meeting ambitious targets.

He reassured stakeholders of the Federal Government’s commitment to a conducive investment climate and maintenance of its global competitiveness in the oil and gas sector.

The visit commenced with a tour of the Abigail-Joseph, the JV’s Floating Production Storage and Offloading (FPSO) vessel, followed by inspections of the Anyala OML 83 and Madu OML 85 Conductor Supported Platforms (CSPs) and a visit to the JV’s Ogu Logistics Base and a Host Community Stakeholders Engagement meeting in Yenagoa, Bayelsa State.

FIRST E&P’s Managing Director, Ademola Adeyemi-Bero, reaffirmed the company’s dedication to the Federal Government’s goals by maximising production, optimising efficiency and contributing to Nigeria’s energy security through the NNPCL/FIRST E&P JV partnership.

“For a nation like Nigeria, where oil and gas remain critical drivers of socio-economic growth, ensuring a sustainable energy supply is essential for industrialisation, economic diversification and improving the quality of life for millions.

“At FIRST E&P, our vision is strongly aligned with the national priorities for production. With a steady output of 56,000bpd, we are focused on achieving our medium-term target of surpassing 100,000bpd,” he said

The Chief Upstream Investment Officer of NNPCL Upstream Investment Management Services (NUIMS), Bala Wunti, represented by Head of Joint Venture Investment Management at NUIMS, Olanrewaju Igandan, commended FIRST E&P and its partners for their achievements over the past decade. He highlighted that since achieving first oil in 2020, the partnership has produced over 50 million barrels of oil, making a significant contribution to national revenue through royalties, taxes and host community development initiatives.

While commending the JV, Bayelsa State Governor, Douye Diri represented by Chief of Staff, Peter Akpe, called for greater collaboration among the Federal Government, oil companies and state authorities to boost production.

Speaking during the Host Community Stakeholders Engagement meeting, Chairman, KEFFESO Host Communities Development Trust (KHCDT), the Amadabo of Moko-ama, Sangana Kingdom, HRH Moses Theophilus, commended the management of the JV for their invaluable support to the host communities through various initiatives in the areas of education, health care and human capital development.