NNPCL Joins Dangote Refinery, Cuts Petrol Price to N899

The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre. The move, which comes just days after the Dangote Refinery made a similar cut, is seen as a response to increased competition in Nigeria’s deregulated fuel market.

The price change, confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), is based on a new regional pricing scheme. While most marketers will now pay N899 per litre for petrol, those purchasing from Warri, Oghara, Port Harcourt, and Calabar will be charged N970 per litre due to regional variations.

Dr Joseph Obele, the National Public Relations Officer of PETROAN, stated that the price reduction reflects the competitive impact of deregulation in the sector. “The reduction by NNPCL is a clear response to the ongoing price cuts in the market, particularly from Dangote Refinery,” Obele said. He also expressed optimism that further price drops could occur before January 2025, citing the global decline in crude oil prices and the recent strengthening of the naira against the US dollar.

The price cut by NNPCL is expected to trigger a price war among oil marketers, potentially benefiting consumers with lower petrol costs. The development is also seen as a boost for the ongoing deregulation of Nigeria’s oil sector, with Obele advocating for the privatization of government-owned refineries to enhance market efficiency.

Although NNPCL’s spokesperson, Femi Soneye, has yet to officially comment on the price change, industry reactions have been positive. PETROAN’s National President, Billy Harry, welcomed the move, calling it a much-needed relief for Nigerian motorists, especially with the holiday season approaching.

“This price reduction demonstrates NNPCL’s commitment to making petroleum products more affordable for Nigerians,” Harry said, noting the timing of the decrease as particularly beneficial for consumers during the festive period.