The Nigerian National Petroleum Company Limited (NNPCL) has reduced the price of Premium Motor Spirit (PMS), also known as petrol, for marketers from N1,045 per litre to N1,030 per litre, in a move aimed at addressing concerns about affordability and competition in the fuel market.
This announcement was made by the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Dr. Billy Harry, during the association’s strategic meeting and award presentation in Abuja.
“Today, NNPCL has reduced their price to N1,030,” Harry revealed. He added that marketers are hopeful for even lower prices in the near future. “We are still hoping and pushing that it will come down further,” he said.
Competing with Dangote Refinery
The reduction comes amid increasing competition between NNPCL and Dangote Refinery, which sells petrol at N970 per litre but requires a minimum purchase of 2 million litres. In contrast, NNPCL imposes no minimum volume, offering flexibility for marketers who cannot afford bulk purchases.
Dr. Harry highlighted this difference, noting that many retail outlet owners prefer NNPCL due to its smaller transaction requirements. “Most of our members are struggling to raise N50 million or N60 million to buy products. With NNPCL, we can buy one product, sell it, quickly turn it around, and then return for more,” he explained.
Domestic Refinery Support
PETROAN has also announced a suspension of plans to import petrol, citing the availability of domestically refined products from Dangote Refinery, Port Harcourt Refinery, and Warri Refinery. “We are not going to start importing if there is product available,” said Dr. Harry. “Why look for dollars to import when we can get a naira-dominated transaction locally?”
Positive Outlook for Lower Prices
The association expressed optimism that increased competition in the free market will lead to further reductions in petrol prices. “The competition is good for the market,” Dr. Harry said. “As I speak to you, NNPCL is already programming us for the current price.”
Marketers are encouraged by the reduced pricing and the reopening of NNPCL’s portal for lifting products. Many believe that local refineries ramping up production will stabilize supply and create even more favorable conditions for marketers and consumers alike.
