- The price reduction by NNPC is in response to the recent price adjustment announced by Dangote Refinery
- PETROAN highlights benefits of the reduction
The Nigerian National Petroleum Company Limited (NNPCL) has reduced its ex-depot prices of Premium Motor Spirit, petrol to N899 from N1020 per litre for oil marketers.
Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, spokesperson Joseph Obele disclosed this in a statement on Saturday.
A document released by the NNPC commercial department shows the latest reduction based on the regional pricing scheme as follows: Lagos, N899.0; Warri, N970.0; Oghara, N970.0; Port Harcourt, N970.0.
and Calabar, N970.0.
The price reduction by NNPC is in response to the recent price adjustment announced by Dangote Refinery.
Also confirming the development, the National President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Dr. Billy Gillis Hary said the N899 per litre is for Lagos while Warri, Oghara, Port Harcourt and Calabar have N970 as their ex-pot price.
Dr. Harry, who described the price reduction as a welcomed development, said: “The reduction in the PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians. We commend NNPCL for responding to our call for affordable PMS prices.
“The benefits of the price reduction are many including reduced transportation costs. With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income.
“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.”
Dr. Hary also commended Dangote Refinery for its earlier price reduction, which he said has helped to stimulate competition in the downstream sector, adding that a report submitted by PETROAN’s technical pricing team, had highlighted the pros and cons of competitive pricing.
He said: “The report noted that competitive pricing allows companies to maintain an advantage by strategically setting prices. This approach helps businesses understand their market position, attract new customers, and boost sales.
“The report also warns that competitive pricing can lead to compromised product quality. Therefore, PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
“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.”
Similarly, the Zonal chairman of Eastern zone, High Chief Sunny Nkpe, said as the price reduction takes effect, PETROAN zonal and its state Executive Councils will continue to monitor the situation, ensuring that the benefits of the price reduction are passed on to the end-users, and that the overall downstream sector remains stable and conducive for business.
On his part, Dr. Joseph Obele, National Public Relations Officer of PETROAN, expressed optimism that PMS 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.
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