The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, to N860 per litre. This move comes as competition in Nigeria’s downstream sector intensifies.
NNPCL’s spokesperson, Olufemi Soneye, confirmed the price cut, explaining that the company has consistently adjusted prices in response to market dynamics since deregulation. Soneye emphasized that price adjustments are a fundamental aspect of a market-driven system and occur regularly to reflect market forces. This approach ensures energy security for the nation while fostering an open and competitive environment.
The price reduction follows a similar move by Dangote Refinery, which recently slashed its ex-depot price by N65 per litre. The new prices at Dangote’s partner retail outlets are N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East. Dangote Refinery stated that this price adjustment aims to provide relief to Nigerians, particularly during the Ramadan season, and supports President Bola Ahmed Tinubu’s economic recovery policy.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributed the price reduction to the strengthening of the naira and a drop in crude oil prices in the international market. IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, noted that these factors have strengthened the deregulation process, with prices now determining consumer behavior.
The NNPCL’s price cut is expected to provide some relief to consumers and could signal further adjustments in the petrol market as stakeholders monitor the impact of the Dangote Refinery’s operations.
