Oil Down Stream Competition Begins As Dangote Refinery, NNPC Slash Petrol Prices to N899 Per Litre
With the price reduction, he said transportation costs will be cut, motorists will spend less on fuel, disposable income will increase, and economic activities will rise
The much-anticipated competition in the downstream segment of the Nigerian oil and gas sector may have finally commenced, with petrol retailers confirming last Saturday that the Nigerian National Petroleum Company Limited (NNPC) has reduced the ex-depot price of its petrol to N899 per litre, barely three days after the Dangote refinery announced a reduction to N899.50 per litre.
Dangote Refinery is also partnering with MRS Oil to reduce the pump price of petrol, just as the President of the Dangote Industries Limited, Aliko Dangote, attributed the reduction in prices of petroleum products in the country to the naira-for-crude deal recently reached by stakeholders in the sector and commended President Bola Tinubu for the overall positive impact the deal is having on the Nigerian economy.
This comes as the NNPCL has debunked a report that it stopped loading its gantries at the Port Harcourt refinery, describing it as a figment of the imagination of some who want to induce artificial scarcity of petrol.
NNPCL’s recently rehabilitated Port Harcourt refinery first began selling at N1,045 per litre (ex-depot), before it reduced to N1,030, and then N1,020 per litre before the latest reduction to N899 per litre.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which confirmed the new development, described it as a ‘significant step’, pointing out that it was in response to the competitive impact of deregulation in the downstream sector.
PETROAN, in a statement signed by its national spokesman, Dr Joseph Obele, stated that under the new pricing, the NNPC’s ex-depot price is N899 per litre in Lagos and N970 in Warri, Oghara, Port Harcourt, and Calabar.
According to the group of petrol retailers, the move is expected to spark a ‘price war’ among oil marketers, ultimately benefiting consumers of petroleum products.
“The company (NNPC) recently reduced the ex-depot price of petrol from N1,020 to N899 per litre, a move that PETROAN has commended. PETROAN hails the NNPC for responding to the call for affordable Premium Motor Spirit (PMS) prices.
“A document released by NNPC’s commercial department indicates a reduction based on regional pricing scheme as: Lagos: 899.0; Warri: 970.0; Oghara: 970.0; PH: 970.0 and Calabar 970.0,” it added.
Describing the price reduction as a welcome development that will bring relief to motorists and Nigerians during the holiday season, the Chairman of PETROAN, Dr Billy Gillis-Harry said it was a demonstration of the NNPCL’s commitment to making petroleum products more affordable for Nigerians.
With the price reduction, he said transportation costs will be cut, motorists will spend less on fuel, disposable income will increase, and economic activities will rise.
“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford necessities and enjoy a better quality of life,” Gillis-Harry argued.
While highlighting the pros and cons of competitive pricing, PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
