Oil and Gas Deregulation: Former NNPC MD Okoye Predicts Imminent Fuel Price Reduction
PMS is currently being sold between N1060 and N1,115 across filling stations in Nigeria
The former Managing Director of the Nigerian National Petroleum Company Limited Retail, Prof. Billy Okoye, has stated that the implementation of deregulation in Nigeria’s oil and gas industry will drive the ex-depot prices of Premium Motor Spirit (Petrol) from the newly revived Port Harcourt and Dangote Refineries below the current rates.
Okoye made this announcement on Friday in Abuja during an event organized by the Petroleum Products Retail Outlet Owners Association (PETROAN), according to Daily Post.
He remarked that President Bola Ahmed Tinubu’s comments regarding the removal of fuel subsidies in May 2023 set the stage for the full deregulation of the oil industry.
Okoye explained that the operational commencement of the Dangote and Port Harcourt Refineries signals the implementation of a system where market forces dictate pricing.
He emphasized that the start of domestic refining operations will lead to a significant reduction in PMS prices in Nigeria.
Additionally, he clarified that there is no price war occurring between the NNPC Limited (NNPCL) and Dangote Refinery following the initiation of operations at the Port Harcourt Refinery.
Okoye added that the functioning of both refineries is beneficial for Nigerians, as the prices of petroleum products are expected to decrease significantly in the near future.
“When the president, Bola Ahmed Tinubu made that announcement, subsidy was gone, what it means is that the market is fully deregulated.
“So with Dangote Refinery coming on stream and NNPC Refinery (Port Harcourt refinery) coming on stream, what does it mean that the market is fully deregulated?
“You buy where you see that is most economically viable for you, and the market now determines the price.
“So there’s no price war. It’s the same thing as in any market where the forces of demand and supply will determine the price.
“So it’s a good thing for Nigeria. And I tell you that within the shortest possible time, the price of petroleum products will crash. This is exactly what happened with the SIM card
Before, SIM cards were N5,000, N30,000. Today, with the competition, SIM cards are almost free now.
“So with this competition in this industry, Dangote Refinery coming up, modular refineries will also start producing PMS, and with all the NNPC refineries coming on board now, you find out that the price is going to crash and Nigerians will start to enjoy,” he was said to have stated.
PETROAN had also hinted at a fresh PMS price reduction.
Recall that the NNPCL on Tuesday announced the commencement of crude oil processing at Port Harcourt.
With the development, PETROAN said the NNPCL has reduced its ex-depot PMS price to N1030 from N1045 per litre.
However, the NNPCL explained that it has not commenced bulk PMS sales to petroleum marketers.
Earlier, Dangote Refinery, which kicked off petrol supply on September 15, 2024, reduced its ex-depot price to N970 per litre.
PMS is currently being sold between N1060 and N1,115 across filling stations in Nigeria.
