The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre.
This move follows a similar price cut by the Dangote Refinery, which reduced its price to N899 a few days prior.
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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) confirmed the development in a statement issued on Saturday. The association’s National Public Relations Officer, Dr. Joseph Obele, stated that the reduction is in line with a regional pricing scheme released by NNPCL’s Commercial Department.
The new price allows marketers to purchase petrol at N899 per litre, aligning with the price set by Dangote Refinery. However, marketers in Warri, Oghara, Port Harcourt, and Calabar will pay N970 per litre for the product.
“The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector,” Obele noted. “The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.”
Obele expressed optimism that PMS prices could continue to decline before January 2025, citing the global drop in crude oil prices and the naira’s recent gain against the dollar. He described the price adjustments as part of a “price war” and called for the privatization of government-owned refineries, emphasizing the role of competition in benefiting consumers.
The move is expected to spark a price war among oil marketers, potentially driving further reductions in fuel prices. However, NNPCL spokesperson Femi Soneye has yet to confirm the latest development.
PETROAN’s National President, Billy Harry, welcomed the price reduction, seeing it as a positive step for motorists and consumers, particularly during the holiday season. “The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” Harry said.
He outlined several benefits of the price cut, including reduced transportation costs, increased economic activity, and an improved standard of living for Nigerians. “Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services,” he added.
Harry also praised Dangote Refinery for its earlier price reduction, which he said had helped stimulate competition in the sector. However, he warned that such competitive pricing could potentially compromise product quality, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure compliance with quality assurance standards.
“PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure compliance with quality assurance standards which may arise due to competitive pricing,” Harry concluded.
