The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N640 per litre to N630 per litre.
The NNPCL also revealed its intention to directly sell to independent marketers instead of routing the product through private depots, enabling final consumers to access petrol at more affordable rates.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the new price and assured of increased supply from NNPC.
Reports from The Nation indicate that independent marketers made payments for the product at the revised petrol price last week.
However, Maigandi noted that only 1% of the products were supplied to marketers instead of the expected 50% allocation. Despite the limited quantity, he stated that the market has already responded, anticipating a reduction in prices, even as NNPC is selling the product at N570 per litre.
“The price has started reducing since NNPCL is giving independent marketers their direct allocation. NNPCL said they will give us direct product instead of taking it to private depot to sell it to us at a higher rate.
“NNPCL has started changing the price now even though they just gave us a small quantity. We are supposed to have 50 per cent of the distribution. Let’s say they have given us one per cent. Even that 1% has started changing the situation of the market.’
“Depot price has started reducing. It was previously N640 per litre. But when the rumour came, we will start getting our direct allocation, they reduced it to N630 per litre. NNPCL sells at N570 per litre,” Maigandi said.