The Nigerian National Petroleum Company Limited has reduced its ex-depot price of Premium Motor Spirit, commonly referred to as petrol, from N1,020 to N899 per litre.

This decision, coming days after the Dangote Refinery reduced its price to N899, was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria in a statement released on Saturday.

The statement signed by the association’s National Public Relations Officer, Dr Joseph Obele, and quoting a document released by NNPCL’s Commercial Department indicates a reduction based on the regional pricing scheme.

The price indicated that marketers would buy the product at N899 per litre, matching the price offered by the Dangote refinery a few days ago.

Marketers purchasing from Warri, Oghara, Port Harcourt and Calabar will, however, pay N970 per litre to offtake products.

The statement read, “The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector.

“The company recently reduced the ex-depot price of Premium Motor Spirit from N1,020 to N899 per litre.

“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.”

Obele noted that the price reduction by the national oil firm is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.

He also 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.

Obele described the trend as a price war while he 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 move is expected to spark a price war among oil marketers, ultimately benefiting consumers.

However, the NNPCL spokesperson, Femi Soneye, is yet to confirm this development.

Reacting to this development, the National President of PETROAN, Billy Harry, said the price reduction is a welcome development that will bring relief to motorists and Nigerians 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.”

He also listed the benefits of the price reduction to consumers, including “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 necessities and enjoy a better quality of life.”

Harry also commended Dangote Refinery for its earlier price reduction, which he said had helped to stimulate competition in the downstream sector.

The PETROAN national official also hinted at a report submitted by PETROAN’s technical pricing team, warning that competitive pricing can lead to compromised product quality.

He further urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure compliance with quality assurance standards.

“PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure compliance with quality assurance standards which may arise due to competitive pricing,” he added.

grandstar:


1f 159 litres make a barrel, how can a litre of petrol sell for N850 at 1,700 exchange rate? It isn't possible.

Dangote Refinery on Saturday said it signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre.

The company’s Group Chief Branding and Communication Officer, Anthony Chiejina, disclosed this in a statement on Saturday.

On Thursday, Dangote Refinery announced a price reduction from N970 per litre to N899.50 per litre for marketers. The company said the reduction was designed to ease transport costs during the festive period.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre. This price has already commenced in Lagos, and it will be offered nationwide from Monday,” Aliko Dangote, founder and president/chief executive of the Dangote Group, was quoted as saying in a statement on Saturday.

PressMyButton:
But some mumu bitter people says the refinery has shut down. Just tell those Obirodents anything negative about Nigeria, they'd throw away their brains and believe it.


After God, na Tinubu 💪 God bless Nigeria.

dre11:




https://punchng.com/updated-nnpcl-slashed-petrol-price-to-n899-per-litre-petroan/?amp

Nlfpmod

figment232:

PressMyButton:
After God, na Tinubu 💪 God bless Nigeria.

GOFRONT:
This is the true definition of Competition......

PMS price will soon hit 500 per Ltr

RealLordZeus:

@74usd per barrel of Brent crude,

Price of Petrol per litre should be around #850 using #1700 as exchange
Let the neck pressing continue..
I sha no wan hear say there is loss from NNPC

figment232:
NNPCL are now loading from Dangote refinery.... Mumus wont understand

post=133390640:
When will it be 300naira per litre?

GOFRONT:
This is the true definition of Competition......

PMS price will soon hit 500 per Ltr

Jorussia:
If exchange rate drops to around #600.Its the exchange rate that is the current reform failure of this administration.