The Nigerian National Petroleum Company Limited has dropped the ex-depot price of Premium Motor Spirit, also known as fuel, from N1,020 to N899 per litre.
This move, made just days after the Dangote Refinery dropped its pricing to N899, was verified by the Petroleum Products Retail Outlets Owners Association of Nigeria in a statement issued on Saturday.
The statement, signed by the association’s National Public Relations Officer, Dr. Joseph Obele, and citing a document provided by NNPCL’s Commercial Department, suggests a reduction based on the regional pricing plan.
The price indicated that marketers would purchase the product for N899 a litre, which matched the price quoted by the Dangote refinery a few days earlier.
Marketers purchasing from Warri, Oghara, Port Harcourt, and Calabar will pay N970 per liter to offload products.
The announcement stated, “The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector.”
“The firm has lately decreased 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 stated that the national oil firm’s price drop is considered as a response to the competitive impact of deregulation, which has resulted in more competition in downstream sectors.
He also expressed optimism that PMS prices will fall further before the end of January 2025, citing the global drop in crude oil prices and the naira’s recent gain against the dollar.
Obele described the trend as a price war, emphasizing that Dangote Refinery and NNPCL’s price reductions demonstrate the benefits of competition and advocated for the urgent privatization of government-owned refineries.
The decision is expected to set up a pricing war among oil marketers, ultimately benefiting consumers.
However, Femi Soneye, the NNPCL spokeswoman, has yet to confirm the development.
In response to this news, Billy Harry, National President of PETROAN, stated that the price reduction is a positive development that will provide assistance to motorists and Nigerians over the holiday season.
He stated, “The reduction in PMS price by NNPCL demonstrates the company’s commitment to making petroleum products more affordable for Nigerians.”
“We commend NNPCL for responding to our call for affordable PMS prices.”
He also mentioned the benefits of the price drop for consumers, such as “Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, resulting in increased disposable income.”
“Increased economic activity: Lower gasoline prices will boost the economy by lowering 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 praised Dangote Refinery for its previous price decrease, which he claimed helped to boost competition in the downstream industry.
The PETROAN national official also alluded to a paper presented by PETROAN’s technical pricing team, warning that competitive pricing can result in lower product quality.
He also encouraged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to comply with quality assurance requirements.
“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,” a statement said.
