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NNPCL Slashes Petrol Price To ₦899

Published

11 hours ago

Dec 21, 2024.

NNPCL reduced petrol’s ex-depot price from ₦1,020 to ₦899 per litre.
PETROAN praised the move, highlighting affordability and market competition benefits.
Quality concerns emerged as stakeholders urged stricter regulatory enforcement.

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦1,020 to ₦899 per litre.

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EKO HOT BLOG reports that this move mirrors a recent adjustment by the Dangote Refinery, which also set its petrol price at ₦899 per litre.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) confirmed the price reduction in a statement signed by its National Public Relations Officer, Dr. Joseph Obele, on Saturday. The statement referenced a document from NNPCL’s Commercial Department detailing the adjustment under a regional pricing framework.

While marketers in some locations, such as Lagos, can now purchase PMS at ₦899 per litre, others sourcing from areas like Warri, Oghara, Port Harcourt, and Calabar will pay ₦970 per litre.

NNPCL’s decision reflects the growing impact of deregulation in Nigeria’s downstream oil and gas sector, fostering heightened competition among stakeholders. Dr. Obele highlighted the development as a “price war” spurred by deregulation and emphasized its potential to enhance market efficiency. He further expressed optimism that petrol prices might drop further by January 2025 due to falling global crude oil prices and the naira’s recent appreciation against the dollar.

The National President of PETROAN, Billy Harry, commended NNPCL for prioritizing affordability during the holiday season.

“The reduction in PMS price demonstrates NNPCL’s commitment to making petroleum products more accessible for Nigerians,” Harry said. He also praised Dangote Refinery for initiating the price reduction, which has driven healthy competition in the sector.

Harry outlined potential benefits for consumers, including reduced transportation costs, increased economic activity, and an improved standard of living.

However, PETROAN raised concerns about the risks of compromised product quality due to competitive pricing. Dr. Obele urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict quality assurance measures to safeguard consumers.