The Nigerian National Petroleum Company Limited (NNPCL) has lowered its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre. The move, confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Saturday, follows a similar reduction by Dangote Refinery earlier in the week.
According to PETROAN’s statement, signed by National Public Relations Officer Dr. Joseph Obele, the reduction aligns with NNPCL’s regional pricing scheme. Marketers sourcing from locations like Warri, Oghara, Port Harcourt, and Calabar will pay a slightly higher rate of N970 per litre.
Obele described the price cut as a response to increased competition from deregulation in the downstream sector, sparking what he termed a “price war.” He predicted further reductions in petrol prices before January 2025, driven by declining global crude oil prices and the naira's recent appreciation.
The association’s president, Billy Harry, welcomed the development, noting that the price cut would provide significant relief to Nigerians, especially during the festive season. Harry outlined consumer benefits such as reduced transportation costs, increased economic activity, and improved living standards.
PETROAN also highlighted potential risks from competitive pricing, such as compromised product quality, and urged regulators to enforce strict quality assurance standards. While the price reduction is expected to benefit consumers, NNPCL’s spokesperson, Femi Soneye, has yet to confirm the decision.
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