NNPCL reduces petrol price to ₦899 per litre amid rising competition in downstream sector

The Nigerian National Petroleum Company Limited (NNPCL) has slashed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by 12% to ₦899 per litre in Lagos, down from ₦1,020 per litre.

For Warri, Oghara, Port Harcourt, and Calabar, the new ex-depot price is ₦970 per litre.

Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), welcomed the reduction, stating that it reflects NNPCL’s commitment to affordable petroleum products for Nigerians.

He highlighted the benefits, including lower transportation costs, increased disposable income, and an overall reduction in the cost of living, which could stimulate economic growth.

Dr. Harry also praised Dangote Refinery for initiating price reductions, which have heightened competition in the downstream sector.

PETROAN’s technical pricing team emphasized that while competitive pricing boosts market activity and customer acquisition, it is crucial to maintain product quality.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been urged to ensure compliance with quality standards.

PETROAN leadership expressed optimism that the price reductions would bring relief to Nigerians, improve economic activity, and stabilize the downstream sector.

Dangote Refinery’s Price Cut and Collaboration with MRS

In response to the market dynamics, Dangote Refinery reduced its PMS price to ₦899.50 per litre at its loading gantry. The company has partnered with MRS to sell petrol at ₦935 per litre at its retail outlets, a price already effective in Lagos and set to be implemented nationwide from Monday.

Anthony Chiejina, Chief Branding and Communications Officer for Dangote Group, reiterated the company’s commitment to providing high-quality petroleum products at affordable prices.

He called on other marketers to collaborate with Dangote Refinery to ensure these benefits reach consumers nationwide.

Impact of Crude-for-Naira Deal

Aliko Dangote, President of Dangote Industries Limited, commended President Bola Ahmed Tinubu for the naira-for-crude swap deal, which has positively impacted petroleum prices. Dangote expressed confidence that this policy would continue to bring economic relief to Nigerians.

Outlook for the Downstream Sector

Dr. Joseph Obele, PETROAN’s National Public Relations Officer, expressed optimism about further reductions in PMS prices before January 2025, citing the global decline in crude oil prices and the naira’s recent appreciation against the dollar.

As competition intensifies among key players, industry stakeholders anticipate more innovations and market dynamics to enhance efficiency and affordability in Nigeria’s downstream sector.