By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, bringing the price below ₦1000 per litre.
A statement issued on Saturday by Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), lauded the move as a strategic response to the competitive pressures of deregulation in the downstream petroleum sector.
“The price reduction by NNPCL reflects the growing competition in the downstream sector, spurred by deregulation. This initiative is expected to ignite a price war among oil marketers, ultimately benefiting consumers,” Dr. Obele said.
NNPCL recently reduced the ex-depot price of PMS from ₦1,020 to ₦899 per litre. The regional pricing scheme now indicates:
Lagos: ₦899.00
Warri: ₦970.00
Oghara: ₦970.00
Port Harcourt: ₦970.00
Calabar: ₦970.00
Relief for Nigerians
Dr. Billy Gillis Hary, National President of PETROAN, praised the price cut as a timely intervention that offers relief to Nigerians, especially during the holiday season.
“This reduction demonstrates NNPCL’s commitment to making petroleum products affordable for Nigerians,” he said. “We commend their proactive approach to addressing our calls for fair PMS pricing.”
Dr. Hary outlined several consumer benefits of the price reduction, including:
Lower transportation costs: A reduction in fuel costs eases expenses for motorists and increases disposable income.
Economic stimulation: Cheaper fuel will reduce production costs, boosting economic activity and consumer demand.
Improved standard of living: Lower living costs will enable Nigerians to afford basic necessities and enhance their quality of life.
He also acknowledged Dangote Refinery’s earlier price reduction, noting its role in fostering competition within the downstream sector.
Ensuring Quality Amid Competition
While highlighting the benefits of competitive pricing, PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to maintain quality assurance standards, cautioning that price wars could compromise product quality.
Dr. Obele expressed optimism that PMS prices would drop further by January 2025, citing the global decline in crude oil prices and the recent appreciation of the naira against the dollar.
“NNPCL’s and Dangote Refinery’s recent price adjustments underline the advantages of competition and highlight the need for privatizing government-owned refineries,” Dr. Obele said.
A Ripple Effect on the Economy
Zonal and state leaders of PETROAN, including High Chief Sunny Nkpe, Zonal Chairman of the Eastern Zone, emphasized the positive ripple effects of the price reduction on Nigeria’s economy.
“The reduction is expected to stabilize the downstream sector while ensuring that the benefits reach end-users,” Nkpe stated.
PETROAN leadership affirmed their commitment to monitoring the situation to ensure that the price cuts deliver lasting relief to Nigerians and maintain a stable and conducive business environment.
