The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has announced that the Nigeria National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS). The price now stands at N899 in Lagos and N970 in other states, a decrease from the previous N1,020.
This development was disclosed in a statement on Saturday by PETROAN’s National Public Relations Officer, Dr. Joseph Obele. He referenced a document issued to marketers by the NNPCL’s commercial department, which outlined the new prices in five key cities:
- Lagos: N899.0
- Warri: N970.0
- Oghara: N970.0
- Port Harcourt: N970.0
- Calabar: N970.0
Dr. Obele explained that this price reduction reflects the impact of deregulation, which has heightened competition in the downstream petroleum sector. He noted that the reduction aligns with similar measures recently implemented by Dangote Refinery, which lowered its petrol price from N970 to N899.50.
Dr. Obele described the situation as a “price war” that will ultimately benefit consumers. According to the National President of PETROAN, Dr. Billy Gillis Hary, the price cut is a welcome development that will provide much-needed relief to motorists and Nigerians, particularly during the holiday season.
Dr. Hary also commended Dangote Refinery for spearheading competition in the sector, noting that it is expected to reduce transportation costs and spur economic growth. He urged petroleum marketers to maintain fair competition and uphold quality standards.
The statement further emphasized the optimism of PETROAN’s zonal and state executives across all 36 states of the federation. They expressed hope that the price reduction by NNPCL would bring significant relief to Nigerians at retail outlets nationwide. The association believes that the lower prices will trigger a ripple effect across the economy, leading to reduced transportation costs, increased economic activities, and an improved standard of living for the populace.
However, PETROAN cautioned against potential risks associated with competitive pricing, such as compromised product quality. It called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with strict quality assurance standards.
Additionally, the association forecasted further price reductions before January 2025, attributing this expectation to the global decline in crude oil prices and the recent appreciation of the naira against the dollar. PETROAN reiterated its commitment to ensuring that Nigerians benefit from these favorable market conditions.
The ongoing adjustments in the downstream sector signal a transformative phase that prioritizes affordability, competition, and improved economic outcomes for all stakeholders.