The price of Premium Motor Spirit (PMS), commonly known as petrol, has fallen below N900 per litre, offering some relief to Nigerian motorists. The reduction, which comes after months of rising fuel costs, was triggered by competition among key players in the downstream sector, particularly following a price cut by the Dangote Refinery. Last week, the Dangote Refinery in Lagos lowered the price of petrol to N899.50 per litre for marketers, which led to the Nigerian National Petroleum Company Limited (NNPCL) also reducing its price by 12%, bringing it to N899 per litre in Lagos, while other regions like Warri and Port Harcourt saw prices around N970 per litre......Read The Full Article>>.....Read The Full Article>>
This price reduction follows a period of frequent hikes, particularly between September and October, when fuel prices climbed to over N1,000 per litre in several regions, raising concerns among consumers. However, with the new adjustments, transportation costs are expected to decrease, benefiting not only motorists but also the broader economy. The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, welcomed the reduction, emphasizing the potential for increased disposable income, lower production costs, and a general improvement in the cost of living.
Further fueling the optimism is the competitive pricing strategy that has emerged in the sector, with Dangote Refinery also playing a pivotal role in driving price reductions. The refinery’s earlier price drop spurred other market players to follow suit, ensuring that the benefits are felt by consumers. However, PETROAN has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure that quality standards are maintained amid the price cuts.
Industry leaders are also hopeful that, with the continued decline in global crude oil prices and the Naira’s recent gains against the dollar, petrol prices may fall further in the coming weeks, with some experts predicting another reduction before the end of January 2025. Additionally, the NNPCL has dismissed reports that the Port Harcourt Refinery has ceased operations, confirming that the facility is fully functional and actively loading products.
