NNPCL officially crashed petrol prices a few days before Christmas.
NewsOnline Nigeria reports that the Nigerian National Petroleum Company Limited (NNPCL) has slashed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦1,020 to ₦899 per litre.
This adjustment follows a similar move by the Dangote Refinery, which recently reduced its petrol price to ₦899 per litre.
This Nigeria news platform understands that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) confirmed this development in a statement released on Saturday.
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Signed by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, the statement referenced a document issued by NNPCL’s Commercial Department detailing the price adjustment under the regional pricing framework.
Marketers will now purchase PMS at ₦899 per litre, aligning with the price set by the Dangote Refinery.
However, buyers sourcing from Warri, Oghara, Port Harcourt, and Calabar will pay ₦970 per litre.
The statement read, “The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector.
“The company recently reduced the ex-depot price of Premium Motor Spirit from ₦1,020 to ₦899 per litre.
“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.”
Dr. Obele noted that the decision demonstrates the growing influence of deregulation on the oil and gas market, fostering increased competition among stakeholders.
He expressed optimism that petrol prices would decline further before the end of January 2025 due to falling crude oil prices globally and the naira’s recent appreciation against the dollar.
He described the current trend as a “price war,” underscoring the benefits of competition and advocating for the full privatization of government-owned refineries to further enhance market efficiency.
Reacting to the development, the National President of PETROAN, Billy Harry, commended the NNPCL for prioritizing affordability 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.
“We commend NNPCL for responding to our call for affordable PMS prices,” Harry said.
He highlighted key benefits for consumers: “Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income.
“Increased economic activity: Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services.
“Improved standard of living: The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford necessities and enjoy a better quality of life.”
Harry also applauded Dangote Refinery for its earlier price cut, crediting it with driving healthy competition in the downstream sector.
While praising the benefits of competitive pricing, PETROAN raised concerns about potential risks to product quality.
Dr. Obele urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict quality assurance measures to protect consumers.
“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,” he warned.
Meanwhile, NNPCL spokesperson Femi Soneye has yet to confirm this development officially.
