The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, for marketers. The price has been adjusted from ₦1,045 per litre to ₦1,030 per litre, according to the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).
Speaking at PETROAN’s strategic meeting and award presentation in Abuja yesterday, the association’s National President, Dr. Billy Harry, confirmed the price reduction.
“Today, NNPCL has reduced their price to ₦1,030 per litre,” Dr. Harry stated, adding that marketers are still engaging with the state-owned company to further lower the cost.
“We are still hoping and pushing that it will come down further,” he added.
The development comes as NNPCL faces competition from Dangote Refinery and Petrochemicals, which sells PMS to marketers at ₦970 per litre, albeit with a minimum purchase volume of two million litres. In contrast, NNPCL allows marketers to lift smaller volumes without any restrictions, making it a preferred option for many operators.
Explaining the dynamics, Dr. Harry noted that despite the slightly higher price, NNPCL’s flexibility allows for quicker turnover.
“Most of our members are struggling to raise ₦50 million or ₦60 million to buy products. NNPCL allows us to buy smaller quantities, sell, turn it around quickly, and come back for more,” he said.
Dr. Harry also disclosed that NNPCL had opened its portal for marketers to commence product lifting as of Wednesday. He expressed optimism that the ongoing competition in the deregulated market would drive petrol prices further down.
“As I speak to you, they (NNPCL) are already programming for us at the current price,” he revealed.
In a move to support domestic refining, PETROAN has suspended plans to import petrol. Dr. Harry emphasized the association’s commitment to sourcing products locally, avoiding the need for dollar transactions.
“So long as products are available, we won’t need to import. We are focused on patronizing Nigerian refineries like Dangote, Port Harcourt, and Warri,” he stated.
The price adjustment and the ongoing free-market competition are expected to ease pressure on marketers and possibly bring relief to consumers in the long run.
