In the nation’s downstream sector, a competitive pricing environment has emerged as the Nigerian National Petroleum Company Limited reduced the ex-depot price of Premium Motor Spirit (petrol) to N899 per litre. This reduction, following a similar action by the Dangote Refinery, was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria. The new price represents a significant drop from the previous price of N1,040 per litre in the Federal Capital Territory.
Marketers are now able to purchase the product at N899 per litre in Lagos, matching the price set by the Dangote refinery. For purchases from other depots in Warri, Oghara, Port Harcourt, and Calabar, the price stands at N970 per litre. This move by the Nigerian National Petroleum Company Limited is a response to the competitive dynamics in the downstream sector due to deregulation.
Market analysts predict further reductions in petrol prices given the global decline in crude oil prices and the strengthening of the naira against the dollar. This trend of price reduction is seen as a beneficial outcome of increased competition, with calls for the privatization of government-owned refineries.
Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria and PETROAN, have expressed satisfaction with the price reductions, anticipating relief for consumers. The reduction in petrol prices is expected to stimulate economic growth, lower production costs, and improve the standard of living for Nigerians.
Meanwhile, the Dangote Industries Limited, in partnership with MRS Petrol station, has announced a petrol price of N935 per litre from its retail outlets nationwide. This partnership aims to ensure that the benefits of price reductions reach end consumers. The reduction in petrol prices was attributed to the naira-for-crude swap deal which has positively impacted the economy, leading to more affordable petroleum products in the country.