The Nigerian National Petroleum Company Limited (NNPCL) has reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre.
This reduction, announced days after the Dangote Refinery adjusted its price to the same level, was confirmed in a statement issued on Saturday by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Regional Pricing Details
The revised pricing indicates that marketers sourcing from NNPCL depots in Warri, Oghara, Port Harcourt, and Calabar will pay N970 per litre, reflecting regional variations.
Industry Response and Competitive Dynamics
In the statement, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, described the move as a response to deregulation-induced competition in the downstream oil sector.
“The reduction by NNPCL signals the benefits of a competitive market. It reflects how deregulation is fostering lower prices in response to market dynamics,” Obele noted.
He expressed optimism about further price reductions by January 2025, citing declining global crude oil prices and the naira’s recent appreciation against the dollar.
Obele referred to the ongoing adjustments as a “price war” that highlights the positive impact of competition, urging for the immediate privatization of government-owned refineries to maximize efficiency.
Impact on Consumers and Economy
PETROAN National President, Billy Harry, commended the price reduction, calling it a welcome relief for Nigerians, especially during the holiday season.
Harry outlined several benefits for consumers:
- Reduced transportation costs: Lower fuel costs mean more disposable income for motorists.
- Boosted economic activity: Decreased production costs will likely spur economic growth and increase demand for goods and services.
- Improved standard of living: A reduced cost of living will enable Nigerians to afford essentials and enjoy better quality of life.
Call for Quality Assurance
While applauding the competitive pricing trend, Harry raised concerns about potential compromises in product quality due to cost-cutting measures. He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict compliance with quality standards.
“Competitive pricing must not lead to a decline in product quality. NMDPRA must ensure that standards are upheld,” Harry stated.
NNPCL Yet to Confirm
NNPCL spokesperson, Femi Soneye, has yet to confirm the price reduction officially.
This development, alongside Dangote Refinery’s earlier pricing adjustment, is expected to intensify competition among oil marketers, ultimately benefiting Nigerian consumers.