Fuel marketers devise strategy to curb losses as Dangote, NNPCL slash fuel prices

• Dangote Refinery has reduced substance prices to N875 per litre astatine retail outlets, causing a large situation for autarkic marketers
• The Nigerian National Petroleum Corporation Limited (NNPCL) has besides slashed prices down to N870 per litre successful its outlets
• To code the challenges arising from these unexpected terms cuts, the autarkic marketers person present announced a caller strategy to curb losses

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

As substance prices proceed to fluctuate successful Nigeria, petrol retailers and marketers person taken a bold measurement to curb the losses they suffer.

In the past mates of months, Dangote Refinery has reduced substance prices respective times, with the latest determination taking the terms down to N875 per litre.

The refinery went a measurement further by offering refunds to its partners to guarantee that the terms simplification is instantly reflected successful pump prices.

The terms warfare betwixt Dangote and NNPCL refinery has continued contempt the renewed partnership. Photo credit: NNPCL
Source: UGC

Filling stations belonging to Ardova Plc, MRS, TechnoOil, Hyde, Optima Energy, and Heyden tin present merchantability the merchandise astatine the caller price.

The Nigerian National Petroleum Corporation Limited (NNPCL) has besides been portion of the terms war, slashing prices down to N870 astatine the pump.

Petrol marketers and others who acquisition from different sources person struggled to minimise losses with the unpredictable terms cuts and person present moved to forge strategical alliances.

Marketers unite to minimise losses

In a bid to safeguard their businesses from the ongoing terms war, the marketers are present forming alliances with caller strategies to minimise the expanding losses.

The Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Ukadike, stated that portion the deregulation of the downstream assemblage has offered consumers respective options, it has besides travel with its challenges for the autarkic marketers.

He said the caller strategy marketers are adopting is to trim acquisition quantities to amended turnover rates.

According to the SUN news, Ukadike explained that alternatively of 1 marketer purchasing a truckload of 45,000 litres, 2 oregon much can excavation resources to stock the truck.

This strategy reduces the fig of days required to merchantability disconnected the proviso truthful that they tin marque caller purchases astatine existent prices.

According to him:

“This is the epoch wherever you bargain what you tin rapidly merchantability and marque bash with the small borderline earlier returning to marque caller orders. If you determine to bargain successful larger quantities now, I tin guarantee you that the marketer would tally into monolithic losses, due to the fact that earlier you decorativeness selling that volume, the bigger players mightiness person slashed prices.”

Recall that the marketers earlier appealed to regulators to forestall the Dangote refinery and NNPCL from arbitrarily slashing substance prices.

The marketers had complained of the mounting losses arsenic the 2 large players combat for marketplace dominance. Photo credit: Pius Utomi Ekpei/Contributor
Source: Getty Images

Dangote Refinery confirms Nigeria's substance is 55% cheaper

In related news, Dangote Refinery has confirmed that Nigeria has immoderate of the cheapest substance prices successful West Africa.

Legit.ng reported that the President of the Dangote Group, Aliko Dangote, said this portion hosting the President of the ECOWAS Commission.

Dangote stated that the substance prices paid successful Nigeria are astatine slightest 55% cheaper than the mean terms of substance crossed West Africa.

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Source: Legit.ng