Petroan: NNPC Cuts Petrol Prices Below 1,000 Per Litre
A litre of Premium Motor Spirit is now priced at less than ₦1,000 thanks to price cuts implemented by the Nigerian National Petroleum Company Limited (NNPCL).
Dr. Joseph Obele, national public relations officer for the Petroleum Products Retail Outlets Owners Association of Nigeria, issued a statement on Saturday describing the action as a major reaction to the competitive effects of downstream deregulation.
The competitive impact of deregulation has boosted competition in the downstream industry, prompting NNPCL to lower prices. In the end, customers will reap the benefits of the action, since it is anticipated to ignite a pricing war among oil marketers.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has praised the company’s recent decision to lower the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per litre.
In response to a request for more reasonably priced Premium Motor Spirit (PMS), the Nigerian National Petroleum Company Limited (NNPCL) has been praised by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), according to a statement.
The NNPC commercial section allegedly reduced prices according to the regional pricing structure, according to a document supplied by the association:
The amount in Lagos is ₦899.0 money.
A total of 970.0 Warri
Cost: ₦970.0
Cost: ₦970.0 in Port Harcourt
Cost: ₦970.0 in Calabar
Dr. Billy Gillis Hary, national president of PETROAN, has said that the price cut is good news that would help motorists and Nigerians over the holidays.
Also, the NNPC has stated that the old Port-Harcourt refinery would not be shut down.
To make petroleum products more accessible for Nigerians, NNPCL has reduced the price of PMS, according to Dr. Hary. “We applaud NNPCL for listening to our request for reasonably priced PMS.”
“Consumers will reap the advantages of the price cut in the following ways:-Decreased transportation expenses: Motorists will have more disposable cash thanks to lower fuel expenditures caused by lower PMS prices, The expansion of the economy: Reduced production costs and increased demand for products and services are two ways in which lower fuel prices will drive economic growth. – A Raised quality of life: “The price reduction will result in a lower cost of living, making basic necessities more affordable and improving the quality of life for Nigerians.”
In addition, Dr. Hary lauded Dangote Refinery for their previous price cut, which they claimed had boosted competitiveness in the downstream industry.
A paper outlining the benefits and drawbacks of competitive pricing was filed by PETROAN’s technical pricing team, which DR Billy alludes to.
Companies may keep their competitive edge through smart pricing, according to the analysis.
“This method assists companies in comprehending their place in the market, entices potential new clients, and increases sales.”
Having said that, the research did caution that low prices can result in low-quality products. As a result, PETROAN is urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to follow quality control measures.
“The state executive councils and zonal leaderships of PETROAN in all 36 states of the federation are hopeful that the latest price decrease by NNPC would alleviate some of the financial burden on Nigerians and make them smile when they shop at different stores throughout the country.
“This optimism is rooted in the belief that the price cut will trigger a domino effect in the economy, resulting in lower transportation costs, more economic activity, and a higher quality of life for the people of Nigeria.”
Speaking on behalf of the Zonal and state leadership, High Chief Sunny Nkpe, the Zonal chairman of the Eastern Zone, stated that PETROAN zonal and its state Executive Councils will closely monitor the situation once the price reduction takes effect. They will make sure that the end-users get the benefits of the reduction and that the downstream sector is stable and business-friendly overall.
The recent strengthening of the naira versus the dollar and the worldwide fall in crude oil prices have led Dr. Joseph Obele, PETROAN’s national public relations officer, to express hope that PMS prices will fall even more by the end of January 2025.
The price war was defined by Dr. Obele as the current trend, and he said that the benefits of competition are shown by the price reductions at Dangote Refinery and NNPCL. He also argued that government-owned refineries should be privatised immediately.