By Akinnodi Francis, Ondo

Economic experts have commended Dangote Refinery and Nigeria National Petroleum Company Limited (NNPCL) for the reduction of fuel prices.

The reports that the group’s President, Billy Gillis-Harry, said Dangote’s reduction to N825 and NNPCL’s reduction from N920 to N875 per litre would help the economy.

In a statement, Gills Harry explained that lower transportation costs would crash food prices.

“Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food.”

An economist, Professor Timothy Awe lauded the refund policy of Dangote Refinery, noting that about N16 billion loss would be absorbed by the refinery through the refund policy.

“This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.

“The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.

“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.

“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on Nigerians.”

He said continuous reduction in the fuel price will have positive effect on the economy especially the food and transportation sector.

Awe urged relevant stakeholders to continue to work together to find a lasting solution to fuel pricing in Nigeria.

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