The Nigerian National Petroleum Company Limited (NNPCL) has lowered its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre.
This reduction, confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Saturday, follows a similar move by Dangote Refinery, which recently adjusted its price to N899 per litre.
According to a statement from PETROAN, signed by National Public Relations Officer Dr. Joseph Obele, and referencing a document from NNPCL’s Commercial Department, the price reduction aligns with the regional pricing scheme. Marketers purchasing from Warri, Oghara, Port Harcourt, and Calabar will pay a slightly higher price of N970 per litre.
The NNPCL’s price cut is seen as a response to the competitive dynamics of deregulation in the downstream sector, which has led to increased competition among marketers. Dr. Obele expressed optimism that PMS prices could fall even further by January 2025, citing the global decline in crude oil prices and the strengthening of the naira against the dollar.
He described the recent price adjustments by NNPCL and Dangote Refinery as part of a price war, emphasizing that such competition benefits consumers. Obele also advocated for the privatization of government-owned refineries, which he believes would further promote competition and efficiency.
PETROAN’s National President, Billy Harry, welcomed the price reduction, noting that it would bring significant relief to motorists and Nigerian consumers, particularly during the holiday season. He praised NNPCL for responding to calls for more affordable petrol prices, emphasizing the positive economic impacts, including reduced transportation costs, increased economic activity, and an improved standard of living for Nigerians.
Harry also acknowledged Dangote Refinery’s earlier price cut for sparking competition in the sector. However, he cautioned that while competitive pricing benefits consumers, it could potentially compromise product quality. PETROAN’s technical pricing team has raised concerns about this, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict quality assurance standards in the industry.
Femi Soneye, the NNPCL spokesperson, has yet to officially confirm the price reduction, but the move is expected to intensify competition among oil marketers and provide welcome relief to consumers across the country.
