The Nigerian National Petroleum Company Limited, NNPCL, has slashed the ex-depot price of Premium Motor Spirit, PMS, also known as petrol by 12 per cent to ₦899 per liter, from ₦1,020 per liter.

The National President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Dr. Billy Gillis Hary, who confirmed the development, said the N899 per litre is for Lagos while Warri, Oghara, Port Harcourt and Calabar have N970 as their ex-pot price.

Dr. Harry, who described the price reduction as a welcomed development, said: “The reduction in the 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 are many including reduced transportation costs. With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income.

“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. 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. Hary also commended Dangote Refinery for its earlier price reduction, which he said has helped to stimulate competition in the downstream sector, adding that a report submitted by PETROAN’s technical pricing team, had highlighted the pros and cons of competitive pricing.

He said: “The report noted 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.

“The report also warns that competitive pricing can lead to compromised product quality. Therefore, PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.

“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.”

Similarly, the Zonal chairman of Eastern zone, High Chief Sunny Nkpe, said as the price reduction takes effect, PETROAN zonal and its state Executive Councils will continue to monitor the situation, ensuring that the benefits of the price reduction are passed on to the end-users, and that the overall downstream sector remains stable and conducive for business.

On his part, Dr. Joseph Obele, National Public Relations Officer of PETROAN, 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.

Dangote hails Tinubu on Crude for Naira deal

Meanwhile, a foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

Dangote Refinery partners MRS to sell PMS at N935 per litre

In his statement, the Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, stated: “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” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

The spokesman of the company, who called on other oil marketers to work with the Dangote Petroleum Refinery, stated: “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various values chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.”

However, as competition among key players continues, operators said they look forward to seeing more market dynamics in Nigeria’s petroleum downstream sector.