Price Drop for Premium Motor Spirit (Petrol) as Competition Stimulates Downstream Sector
In a remarkable turn of events, the price of Premium Motor Spirit (PMS), commonly referred to as petrol, has seen a significant decrease, dropping from N1,020 per litre to N899 per litre following a price cut by Dangote Refinery. This adjustment has encouraged other marketers to follow suit, leading to lower prices across various regions.
Previously, petrol prices had been on a continuous upward trajectory, raising concerns among consumers that the trend would persist into the upcoming festive season. Between mid-September and early October, the Nigerian National Petroleum Company Limited (NNPCL) raised fuel prices from N950 in Lagos to as high as N1,030 in Abuja. However, the NNPCL has now reduced the price by 12%, offering some relief to motorists by making fuel more accessible.
Addressing the price reduction, Dr. Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that the new price of N899 per litre applies to Lagos, while other cities such as Warri, Oghara, Port Harcourt, and Calabar will have an ex-port price of N970. Gillis-Harry praised the NNPCL for its commitment to providing affordable petroleum products, noting that the price cut would have numerous benefits for consumers.
“Lower PMS prices will help reduce transportation expenses, leaving motorists with more disposable income,” Gillis-Harry stated. He also mentioned that the reduction could stimulate economic growth as lower transportation costs lead to increased demand for goods and services, thereby decreasing living costs and improving the quality of life for Nigerians.
He attributed the recent pricing strategy to competitive dynamics within the sector, commending Dangote Refinery for its proactive measures that have spurred market competition. However, Gillis-Harry warned that while competitive pricing can attract new customers and boost sales, it could potentially compromise product quality. As such, PETROAN is urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure quality compliance across the industry.
Further, Chief Sunny Nkpe, Zonal Chairman of PETROAN’s Eastern zone, mentioned that local leaders would actively monitor the situation to ensure the benefits of the price slash reach consumers. Dr. Joseph Obele, the National Public Relations Officer of PETROAN, expressed optimism about further price reductions in light of declining global crude oil prices and the strengthening of the Naira against the dollar.
Meanwhile, Aliko Dangote, President of Dangote Industries Limited, expressed gratitude towards President Bola Tinubu for facilitating a Naira-for-crude swap deal that has positively impacted petrol pricing. The Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, confirmed a partnership with MRS to offer petrol at a price of N935 per litre nationwide starting Monday, emphasizing their commitment to providing quality fuel at competitive prices for all Nigerians.
Amid these developments, Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, dismissed rumors regarding the operational status of the Port Harcourt Refinery, asserting that it remains active with ongoing loading procedures confirmed by former NNPC Group Managing Directors.
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