The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per liter in what industry players describe as a significant step in response to the competitive impact of deregulation in the downstream sector.
It will be recalled that the Dangote refinery recently announced a reduction in pump price to ₦935 per liter in all MRS Stations nationwide.
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 Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in a statement expressed excitement over the action of the Nigerian National Petroleum Company Limited (NNPCL), describing it as a positive response to the call for affordable Premium Motor Spirit (PMS) prices.
According to a document released by NNPC commercial department, the reduction which is based on regional pricing scheme will have petrol sell for ₦899 in Lagos and ₦970 in Warri, Oghara, Port Harcourt and Calabar.
The National President of PETROAN, Dr. Billy Gillis Hary, said the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season.
“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” Dr. Hary said. “We commend NNPCL for responding to our call for affordable PMS prices.”
He said the benefits of the price reduction to consumers include Reduced transportation costs, increase in disposable income, Increased economic activity, improved economic growth as well as improved standard of living.
While commending Dangote Refinery for its earlier price reduction, which helped to stimulate competition in the downstream sector, Dr Billy also hinted at a report submitted by PETROAN’s technical pricing team, which highlights the pros and cons of competitive pricing.
The report notes 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.
Dr. Joseph Obele, National Public Relations Officer of PETROAN, in a statement 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.
Dr. Obele emphasized that the price reduction by Dangote Refinery and NNPCL demonstrates the benefits of competition and advocates for the immediate privatization of government-owned refineries.
The statement added that 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.
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