Victor EzejaIn what seems like an emerging competition in the downstream sector, the Nigeria National Petroleum Company Limited (NNPCL), has cut its ex-depot price of Premium Motor Spirit (PMS), also known as petrol to ₦899 per liter.
This reflects a 12 per cent reduction from ₦1,020 per liter it sold previously.
Join our WhatsApp ChannelThis was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), referring to a document released by NNPCL’s Commercial Department.
In a statement signed by PETROAN National Public Relations Officer, Dr Joseph Obele, the association said the N899 per litre is for Lagos while Warri, Port Harcourt, Calabar other parts of South-South have N970 as their ex-depot price.
The statement quoted PETROAN national president, Dr. Billy Gillis Hary, saying the petrol price reduction is a welcome development, especially in this festive season as it would bring relief to motorists and Nigerians.
Dr Hary noted that it is a demonstration of the NNPCL’s commitment to making petroleum products more affordable for Nigerians.
He highlighted the benefits of the petrol price reduction such as reducing transportation costs and other items.
“We commend NNPCL for responding to our call for affordable PMS prices.
“The benefits of the price reduction are many including reduced transportation costs. With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income,” the PETROAN national president stated.
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“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 added.
This comes few days after Dangote Refinery announced reduction in price of petrol supplied from its refinery.
The 650,000 barrels per day facility said that as part of its Christmas Holiday bonanza, it would now sell at N899.50k for marketers against N970 sold previously.
PETROAN president said what the NNPCL has done with the price reduction is “is perceived as a reaction to the competitive impact of deregulation, which has resulted in increased competition in the downstream sector.”
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Hary also applauded Dangote Refinery for its price reduction, which he said had helped to engender healthy competition in the downstream sector.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
