The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the Nigerian National Petroleum Company Limited (NNPCL) has cut down prices of Premium Motor Spirit (PMS) below ₦1,000 per litre.
According to PETROAN’s National Public Relations Officer, Dr Joseph Obele, on Saturday, the competitive impact of deregulation in the downstream sector informed the organisation’s decision to reduce its price.
“The move is expected to spark a price war among oil marketers, ultimately benefiting consumers,” he said.
Obele revealed that NNPCL reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per litre.
He expressed optimism that PMS prices will drop further before the end of January 2025 due to the global decline in crude oil prices and the naira’s recent gain against the dollar
A document released by the NNPCL commercial department indicated a reduction based on the regional pricing scheme.
A little of PMS now sells for ₦899.00 in Lagos and ₦ 970.00 in Warri.
In Oghara, Port Harcourt and Calabra, one litre sells for ₦970.0
The price reduction has been welcomed by the National President of PETROAN, Dr. Billy Gillis Hary, who expects relief to be witnessed by motorists and Nigerians during the holiday season.
He said,“The benefits of the price reduction to consumers include – Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income, Increased economic activity. Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services.
“The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.”
Dr Hary also commended Dangote Refinery for its earlier price reduction.
Meanwhile, a report submitted by PETROAN’s technical pricing team highlighted the pros and cons of competitive pricing.
Warning that competitive pricing could lead to compromised product quality, PETROAN urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
