The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the Nigeria National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS) from N1,020 to N899 in Lagos, and N970 in other states.
This is contained in a statement by the National Public Relations Officer of PETROAN, Dr Joseph Obele, on Saturday.
Quoting a document released to marketers by the commercial department of NNPC, he listed the new prices in NNPCL outlets in five cities to include:
Lagos – 899.0
Warri – 970.0
Oghara – 970.0
Port Harcourt – 970.0
Calabar – 970.0
Obele noted that the reduction in price is a “response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.”
This is coming days after the Dangote refinery slashed petrol price from N970 to N899.50 at its plant.
Nairametrics reported that the private refinery has partnered with MRS Petrol Station to sell to consumers at N935 per liter.
Dr Obele, in his statement, described the development as a price war that will be “ultimately benefiting consumers.”
“According to the National President of PETROAN, Dr. Billy Gillis Hary, the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season,” the statement added.
- Dr. Hary reportedly commended Dangote Refinery for initiating the competition in the downstream sector of the petroleum industry, adding that it will lead to a reduction in transportation costs and general economic growth.
“The Zonal leaderships of PETROAN and state Executive Councils across the 36 states of the federation have expressed optimism that the recent price reduction by NNPC will bring relief and put smiles on the faces of Nigerians at various retail outlets nationwide.
“This optimism stems from the fact that the price reduction will have a ripple effect on the economy, leading to reduced transportation costs, increased economic activity, and an improved standard of living for Nigerians,” the statement read further.
- Although PETROAN warned that competitive pricing can lead to compromised product quality. It called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
- The association expressed optimism that petrol 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.
What you should know
- Nairametrics reported that global oil prices took a hit last Friday, as prices of both Brent crude oil and the U.S. West Texas Intermediate (WTI) dipped by 0.56% and 0.56% respectively.
- Brent crude has hovered below $80 in recent months as OPEC struggles to cut production and doubts demand growth in 2025.
- Locally, the Dangote refinery has introduced competitive pricing through improved supply and direct transactions with marketers, sidestepping the NNPC.