The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, bringing the price down to N899 per litre from the previous N1,020 per litre for oil marketers.
This development was revealed in a statement on Saturday by the spokesperson of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Joseph Obele.
According to Obele, the price adjustment aligns with the NNPCL’s commitment to creating a balanced pricing mechanism. He added that this decision would have a significant impact on the downstream sector, particularly for petroleum marketers and consumers.
The revised prices are part of a regional pricing scheme and vary across locations. A document released by NNPCL’s commercial department outlines the new pricing structure: Lagos is set at N899.0 per litre, while Warri, Oghara, Port Harcourt, and Calabar will now sell at N970.0 per litre.
Industry experts believe this price reduction is a direct response to the recent adjustments made by Dangote Refinery, which announced changes to its pricing model earlier in the week. The refinery’s pricing shift appears to have influenced NNPCL’s strategy, prompting this latest downward revision in depot prices.
“This price reduction by NNPC is significant as it reflects an effort to stabilize the market amidst fluctuations in global oil prices and local refining capacities,” Obele stated.
The adjustment is expected to bring some relief to oil marketers, who have faced challenges with high costs and market volatility in recent months. Consumers, however, are watching closely to see how this reduction will translate to pump prices at filling stations.
The NNPCL has reiterated its commitment to working with stakeholders to ensure fair pricing while maintaining the supply chain’s efficiency. Further developments are anticipated as the industry adjusts to the new pricing framework.
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