In a significant development for Nigerian consumers, the price of Premium Motor Spirit (PMS), commonly known as petrol, has dropped below ₦900 per litre following intense competition among key players in the downstream oil sector. This comes after weeks of escalating prices that raised concerns among Nigerians about affordability during the festive season.
Price Drop and Market Dynamics
The reduction was driven by the Dangote Refinery’s decision to cut its petrol price to ₦899.50 per litre for marketers, a move that immediately influenced the market. The Nigerian National Petroleum Company Limited (NNPCL) also joined in, slashing prices by 12%, with PMS now retailing at ₦899 in Lagos. In other regions, such as Warri, Port Harcourt, and Calabar, the ex-depot price stands at ₦970.
Before this change, petrol prices had peaked at over ₦1,000 per litre in various parts of the country, with Abuja recording ₦1,030 per litre. Between September and October, incremental hikes by the NNPCL had caused widespread unease, but the recent reductions have provided much-needed relief.
Industry Reactions
Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), praised the NNPCL and Dangote Refinery for their actions, calling them a step toward affordability.
“The reduction in PMS prices demonstrates a commitment to making petroleum products accessible to Nigerians,” he stated. “Lower prices will reduce transportation costs, stimulate economic growth, and improve the standard of living for citizens.”
Gillis-Harry also highlighted that competitive pricing has both opportunities and challenges. While it attracts customers and boosts sales, there is a risk of compromised quality. He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce quality standards across the sector.
Government and Industry Collaboration
Aliko Dangote, President of Dangote Industries Limited, lauded President Bola Tinubu’s Naira-for-crude swap deal for its role in stabilizing petrol prices. Dangote Refinery has partnered with MRS Oil to ensure nationwide distribution at ₦935 per litre, with implementation already underway in Lagos.
“We aim to provide Nigerians with high-quality petrol that is good for their vehicles, health, and pockets,” said Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group.
Port Harcourt Refinery: Operational Status
Meanwhile, the NNPCL addressed rumors that the Port Harcourt Refinery had ceased operations. In a statement, Chief Corporate Communications Officer Mr. Olufemi Soneye confirmed that the refinery remains functional, with ongoing loading activities.
“The refinery is fully operational, as verified by former Group Managing Directors of the NNPCL,” Soneye said, emphasizing the company’s commitment to maintaining steady fuel production.
Looking Ahead
The reduction in petrol prices marks a turning point for Nigeria’s downstream sector, signaling the potential for increased competition and improved consumer welfare. As stakeholders continue to align their efforts, Nigerians can look forward to a more stable and accessible fuel market.
