The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,020 to N899 per litre.
The price reduction to N899 was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria, based on a regional pricing scheme.
Marketers purchasing from certain locations, including Warri, Oghara, Port Harcourt, and Calabar, will pay N970 per litre to offtake products.
According to Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, the price reduction by NNPCL is a response to the competitive impact of deregulation in the downstream sector.
Obele expressed optimism that PMS prices will drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.
The National President of PETROAN, Billy Harry, welcomed the price reduction, stating that it will bring relief to motorists and Nigerians during the holiday season.
“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians. We commend NNPCL for responding to our call for affordable PMS prices,” Hary said.
Harry commended NNPCL for responding to the call for affordable PMS prices and highlighted the benefits of the price reduction, including reduced transportation costs, increased economic activity, and improved standard of living.
NewsBreakNaija recalls that in September a statement by Mr. Olufemi Soneye the Chief Corporate Communications Officer of NNPC Ltd. said Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by unrestricted free market forces.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
