NNPC Reduces Petrol Price to Below ₦1000 Per Litre Amid Deregulations

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The Nigerian National Petroleum Company Limited (NNPCL) has reduced the price of Premium Motor Spirit (PMS) to below ₦1000 per litre, signaling a response to the competitive dynamics unleashed by the deregulation of Nigeria’s downstream petroleum sector.

The announcement was made public through a statement by Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), on Saturday. According to the statement, the price cut is a welcome development expected to spark a price war among oil marketers, ultimately benefiting consumers.

NNPCL’s newly adjusted regional pricing scheme includes the following rates: Lagos, ₦899.0, Warri ₦970.0, Oghara ₦970.0, Port Harcourt ₦970.0 and Calabar ₦970.0

Dr. Billy Gillis-Harry, National President of PETROAN, commended NNPCL for the price reduction, noting its potential to bring relief to motorists and positively impact the economy.

“This move demonstrates NNPCL’s commitment to making petroleum products more affordable and accessible,” Dr. Gillis-Harry stated

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The price reduction follows a similar move by Dangote Refinery, which has been credited with increasing competition within the downstream sector. PETROAN highlighted the advantages of competitive pricing, including market expansion, customer attraction, and boosted sales, while cautioning against potential compromises in product quality.

To ensure quality assurance, PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce compliance across the sector.

Dr. Obele expressed optimism that PMS prices could drop further by January 2025, citing a global decline in crude oil prices and the naira’s recent appreciation against the dollar.

“The ongoing price war underscores the benefits of deregulation and competition,” Dr. Obele remarked. “We advocate for the immediate privatization of government-owned refineries to fully unlock the sector’s potential.”