PETROAN said the move was announced days after the Dangote Refinery also lowered its price to N899 in a statement issued on Saturday.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has announced that the Nigerian National Petroleum Company Limited (NNPCL) has reduced its ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, from N1020 to N899 per litre.
PETROAN said the move was announced days after the Dangote Refinery also lowered its price to N899 in a statement issued on Saturday.
The statement, signed by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, referenced a document from NNPCL’s Commercial Department, highlighting the reduction in line with the regional pricing scheme.
According to the document, marketers will now purchase the product at N899 per litre, aligning with the price set by the Dangote Refinery.
However, marketers in Warri, Oghara, Port Harcourt, and Calabar will pay N970 per litre to purchase products from those locations.
The statement read, “The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector.
“Recently, NNPCL reduced the ex-depot price of Premium Motor Spirit from N1020 to N899 per litre.
“This price reduction is a direct response to deregulation, which has spurred increased competition in the sector.”
Obele emphasised that the price reduction is a result of deregulation’s competitive effects and expressed optimism that PMS prices could fall even further by the end of January 2025, given the global decline in crude oil prices and the recent strengthening of the naira against the dollar.
Obele described the situation as a "price war," highlighting that the reductions by both Dangote Refinery and NNPCL demonstrate the positive effects of competition.
He also advocated for the immediate privatisation of government-owned refineries.
This development is expected to trigger a price war among oil marketers, which would ultimately benefit consumers.
However, NNPCL spokesperson, Femi Soneye. has yet to confirm the change.
Billy Harry, the National President of PETROAN, welcomed the price reduction, describing it as a relief for motorists and Nigerians, particularly during the holiday season.
He said, “The reduction in PMS prices by NNPCL shows the company’s commitment to making petroleum products more affordable for Nigerians. We commend NNPCL for responding to our call for lower PMS prices.”
Harry listed several benefits of the price reduction, including: “Reduced transportation costs: Motorists will pay less for fuel, resulting in more disposable income.
“Increased economic activity: Lower fuel prices will reduce production costs, boosting demand for goods and services.
“Improved standard of living: The price drop will help lower the cost of living, enabling Nigerians to afford necessities and improve their quality of life.”
Harry also praised Dangote Refinery for its earlier price cut, which he said had stimulated competition within the sector.
He referenced a report from PETROAN’s technical pricing team, which cautioned that competitive pricing might compromise product quality.
He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
“PETROAN calls on the NMDPRA to enforce quality assurance standards to prevent any decline in product quality due to competitive pricing,” Harry added.