Petrol Price Drops Below N900 Amid Intense Competition

The price of Premium Motor Spirit (PMS), commonly known as petrol, has dropped below N900 per litre as competition in Nigeria’s downstream sector intensifies. This marks a significant relief for consumers, who have faced skyrocketing fuel prices in recent months.

Petrol, previously sold at N1,020 per litre, now costs N899 after the Dangote Refinery in Lagos slashed its price to N899.50 for marketers. The Nigerian National Petroleum Company Limited (NNPCL) has also reduced its petrol price by 12%, bringing some financial respite to Nigerians during the festive season.

Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed the reduction, stating that the new price of N899 applies to Lagos, while other regions such as Warri, Port Harcourt, and Calabar will see an ex-depot price of N970. He emphasized that the reduction demonstrates NNPCL’s commitment to making petroleum products more affordable for Nigerians.

The drop in petrol prices is expected to have multiple benefits, including reduced transportation costs and increased disposable income for consumers. Gillis-Harry noted that lower prices would stimulate economic growth, reduce production costs, and improve the standard of living for Nigerians.

Aliko Dangote, President of Dangote Industries Limited, praised President Bola Tinubu for the crude-for-Naira swap deal, attributing the price drop to its positive impact. Dangote’s partnership with MRS to sell petrol at N935 per litre from its retail outlets nationwide is set to commence, further ensuring affordability for consumers.

Meanwhile, NNPCL has debunked rumors suggesting that the Port Harcourt Refinery has ceased operations. Chief Corporate Communications Officer, Mr. Olufemi Soneye, clarified that the refinery remains fully operational, with ongoing loading activities verified by former NNPC Group Managing Directors.

The recent price reductions, coupled with the Naira’s gains against the dollar and a global decline in crude oil prices, have raised optimism for further decreases in petrol prices before January 2025. Stakeholders, including PETROAN and its zonal leaders, have committed to monitoring the situation to ensure the benefits of the reduction are passed on to consumers nationwide.