NNPC Reduces Petrol Price To Below ₦1000 Per Litre

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the price of Premium Motor Spirit (PMS) to below ₦1000 per litre across the country.

In a statement on Saturday, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Joseph Obele, emphasized that the reduction reflects the competitive nature of the deregulated downstream sector.

NNPCL adjusted its ex-depot price for PMS from ₦1,020 to ₦899 per litre, a move widely applauded by PETROAN.

“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.

“The company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per litre, a move that has been commended by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN)

“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has hailed the Nigerian National Petroleum Company Limited (NNPCL) for responding to the call for affordable Premium Motor Spirit (PMS) prices,” the statement said in part.

The PETROAN said a document released by the NNPC commercial department indicated a reduction based on the regional pricing scheme as:

• Lagos: ₦899.0
• Warri: ₦970.0
• Oghara: ₦970.0
• Port Harcourt: ₦970.0
• Calabar: ₦970.0

Dr. Billy Gillis-Harry, PETROAN’s National President, commended NNPCL for prioritizing affordability, particularly during the holiday season.

He said, “The reduction in 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 to consumers include:- Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income, Increased economic activity: Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services, – Improved standard of living:

“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. Harry also acknowledged Dangote Refinery’s earlier price cut, which he noted had fostered competition within the sector.

He emphasized the importance of balancing competitive pricing with product quality, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict quality assurance measures.

“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,” DR Billy

PETROAN’s leadership expressed optimism that this reduction would bring relief to Nigerians and positively impact the economy.

They pledged to monitor the implementation to ensure consumers fully benefit from the price cut.

Dr. Obele added that further reductions might occur by January 2025, citing falling global crude oil prices and the naira’s recent appreciation against the dollar.

He described the ongoing trend as a “price war” that underscores the advantages of market competition

Dr. Obele also called for the swift privatization of government-owned refineries to sustain the momentum and enhance efficiency in the sector.

KanyiDaily recalls that the NNPCL also dismissed claims that the Port Harcourt Refinery Company (PHRC) has ceased operations, affirming that the facility is fully functional.