Days after Dangote Refinery slashed its ex-depot price of Premium Motor Spirit, petrol, the Nigerian National Petroleum Company Limited, NNPCL, has followed suit.
The national petroleum company has reduced its ex-depot price to N899 per litre to N1,020.
The Petroleum Products Retail Outlets Owners Association of Nigeria, confirmed the good news via a press statement, on Saturday, signed by the association’s National Public Relations Officer, Dr Joseph Obele.
Quoting a document released by NNPCL’s Commercial Department, the statement indicates that the reduction, based on the regional pricing scheme, entails that marketers would buy the product at N899 per litre, thus matching the price offered by Dangote Refinery.
However, marketers purchasing from Warri, Oghara, Port Harcourt and Calabar will pay N970 per litre to offtake products.
“The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector,” the statement read,
“The company recently reduced the ex-depot price of Premium Motor Spirit from N1,020 to N899 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.”
Obele further informed that the price reduction by the national oil company was a direct response to the competitive impact of deregulation, leading to increased competition in the downstream sector.
Obele also expressed optimism that PMS prices will drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.
He described the trend as a price war, emphasizing that the price reduction by Dangote Refinery and NNPCL demonstrates the benefits of competition and advocates for the immediate privatization of government-owned refineries.
The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.
Femi Soneye, NNPCL spokesperson, was, however, yet to confirm the development as at the time of this report.
Responding to the development, National President of PETROAN, Billy Harry, described the price reduction is a welcome development that should ultimately bring relief to motorists and Nigerians during the festive holiday season.
His words: “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.”
“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.”
The PETROAN National President commended Dangote Refinery for its initiative in slashing it’s ex-depot price, a move which, he said, has helped to stimulate competition in the downstream sector.
The PETROAN national official also hinted at a report submitted by PETROAN’s technical pricing team, warning that competitive pricing can lead to compromised product quality.
He warned against any unwholesome practices like compromising 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,” Willy Harry said.
