Economy And Business

NNPCL Reduces PMS Prices, PETROAN Commends Move

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By Bunmi Yekini

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per liter in Lagos, with varying prices in other regions. This strategic move is seen as a response to deregulation in the downstream sector, which has intensified competition among oil marketers.

Dr. Billy Gillis Hary, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), hailed the price reduction, describing it as a significant relief for Nigerians during the holiday season.

“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” Dr. Hary stated. “We commend NNPCL for responding to our call for affordable PMS prices.”

The revised regional pricing scheme is as follows:

  • Warri: ₦970.0
  • Lagos: ₦899.0
  • Oghara: ₦970.0
  • Port Harcourt: ₦970.0
  • Calabar: ₦970.0

According to PETROAN, the price reduction will have far-reaching benefits for consumers, including reduced transportation costs, increased economic activity, and an improved standard of living.

Dr. Hary also acknowledged the earlier price reduction by Dangote Refinery, noting its role in stimulating competition within the downstream sector.

The Competitive Landscape

Dr. Joseph Obele, National Public Relations Officer of PETROAN, described the recent price adjustments by NNPCL and Dangote Refinery as a sign of a “price war” benefiting consumers.

“The price reduction demonstrates the advantages of competition and underscores the need for the immediate privatization of government-owned refineries,” Dr. Obele stated. He expressed optimism that PMS prices would drop further by January 2025, citing a global decline in crude oil prices and the naira’s recent appreciation.

PETROAN’s Call for Oversight

While acknowledging the advantages of competitive pricing, PETROAN emphasized the need for regulatory oversight to maintain product quality.

“Competitive pricing should not come at the expense of product quality. We call on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality standards,” Dr. Hary added.

Optimism from Regional Leaders

Mr. Sunny Nkpe, Zonal Chairman of PETROAN’s Eastern Zone, expressed confidence that the price reduction would bring relief to Nigerians and stimulate economic growth.

“We will monitor the situation to ensure the benefits of the price reduction reach end-users while maintaining stability in the downstream sector,” Nkpe assured.

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