BREAKING: NNPCL Slashes Petrol Price to N899 Per Litre, Sparks Price War in Downstream Sector

In a bold move aimed at increasing competition and benefiting consumers, the Nigerian National Petroleum Company Limited (NNPCL) has announced a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. Effective immediately, the new price will be N899 per litre, down from the previous price of N1,020 per litre.

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This development comes hot on the heels of the Dangote Refinery’s recent decision to reduce its petrol price to N899 per litre, and is seen as a strategic response by NNPCL to the emerging competitive landscape in the downstream sector.

According to a statement released by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) on Saturday, the new price is based on a regional pricing scheme. Marketers purchasing petrol from Lagos will pay the reduced price of N899 per litre, while those buying from Warri, Oghara, Port Harcourt, and Calabar will pay N970 per litre.

The statement, signed by PETROAN’s National Public Relations Officer, Joseph Obele, quoted a document released by NNPCL’s Commercial Department, which confirmed the price reduction. Obele noted that the price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.

This move is expected to spark a price war among oil marketers, ultimately benefiting consumers who will enjoy lower petrol prices. With NNPCL and Dangote Refinery offering competitive prices, other oil marketers are likely to follow suit, leading to a reduction in petrol prices across the country.

The development is a significant milestone in the deregulation of the downstream sector, and is expected to have far-reaching implications for the Nigerian economy. As the competition in the sector heats up, consumers are poised to reap the benefits of lower prices, improved service delivery, and increased investment in the sector.