NNPC reduces ex-depot petrol price to N899/litre

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says the Nigerian National Petroleum Company (NNPC) Limited has reduced its ex-depot price of petrol to N899 per litre in Lagos.

The development comes days after the Dangote refinery slashed the ex-depot price of the product to the same amount.

In a statement on Sunday by Joseph Obele, PETROAN’s national public relations officer (PRO), the association described the price reduction by NNPC as a response to the competitive impact of deregulation.

The association said the new “regime” has led to increased competition in the downstream sector.

“The move is expected to spark a price war among oil marketers, ultimately benefiting consumers,” PETROAN said.

“The company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from N1,020 to N899 per liter, a move that has been commended by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).”

According to the association, a document released by the NNPC commercial department shows a reduction based on the regional pricing scheme.

Citing the document, PETROAN said the price of the product was cut down to N899 in Lagos, N970 in Oghara, N970 in Port Harcourt, and N970 in Calabar.

‘IT’LL BRING RELIEF TO NIGERIANS DURING YULETIDE’

Speaking on the price cut, Billy Gillis-Harry, PETROAN’s president, described it as a welcome development “that will bring relief to motorists and Nigerians during the holiday season”.

“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” he said.

“We commend NNPCL for responding to our call for affordable PMS prices.”

Harry also commended the Dangote refinery for its earlier price reduction, which he said had assisted in stimulating competition in the downstream sector.

On his part, Sunny Nkpe, PETROAN’s zonal chairman of the eastern zone, said as the price reduction takes effect, the association’s zonal and its state executive councils would continue to monitor the situation.

Nkpe added that they would ensure that the benefits of the price cut are passed on to the end-users and that the overall downstream sector remains stable and conducive for business.

Also, Obele expressed optimism that petrol prices would 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”.

Obele described the downward trend as a price war, emphasising that the price reduction by Dangote refinery and NNPC demonstrates the benefits of competition and advocates for the immediate privatisation of government-owned refineries.