NNPCL Slashes Petrol Price to ₦899 Per Litre in Competitive Move Against Dangote – PETROAN
The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦1,020 to ₦899 per litre. This move comes just days after Dangote Refinery announced a similar price slash to ₦899 per litre, intensifying competition in Nigeria’s downstream petroleum sector.
PETROAN Confirms Price Adjustment
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) confirmed the price reduction in a statement on Saturday, December 21, 2024. Dr. Joseph Obele, PETROAN’s National Public Relations Officer, revealed that NNPCL’s Commercial Department issued a document outlining the new regional pricing scheme.
According to the statement, while marketers in most regions will now buy petrol at ₦899 per litre, those purchasing from depots in Warri, Oghara, Port Harcourt, and Calabar will pay ₦970 per litre.
Deregulation Drives Competition
The price adjustment reflects the growing impact of deregulation in the downstream sector, which has heightened competition among major players.
“The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive pressures arising from deregulation,” Obele stated.
He added that this price war highlights the benefits of deregulation, as it encourages market competitiveness and provides potential relief for consumers.
Marketers Predict Further Reductions
Dr. Obele expressed optimism that PMS prices could drop even further before the end of January 2025. He attributed this possibility to the global decline in crude oil prices and the recent strengthening of the Nigerian naira.
“This trend underscores the importance of competition in the sector and reinforces the need for the immediate privatisation of government-owned refineries,” Obele noted.
Consumers Stand to Benefit
As the price war between NNPCL and Dangote Refinery escalates, retailers are expected to adjust their pricing strategies, leading to potential benefits for consumers across the country.
The reduction in petrol prices demonstrates how deregulation fosters a more dynamic and consumer-friendly market environment, with increased opportunities for affordability.
