By John Audu
In a bid to remain competitive in the downstream sector, the Nigerian National Petroleum Company Limited (NNPCL) has announced a 12 per cent reduction in the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to ₦899 per liter from ₦1,020 per liter.
According to the National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis Hary, the reduced price of ₦899 per liter applies to Lagos, while other areas like Warri, Oghara, Port Harcourt, and Calabar have an ex-depot price of ₦970 per liter.
The National President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Dr. Billy Gillis Hary, who confirmed the development, said the N899 per litre is for Lagos while Warri, Oghara, Port Harcourt and Calabar have N970 as their ex-pot price.
Dr. Harry, who described the price reduction as a welcomed development, said: “The reduction in the 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.
“The benefits of the price reduction are many including reduced transportation costs. With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income.
“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.”
Dr. Harry hailed the move as a positive step towards making petroleum products more affordable for Nigerians, stating that lower PMS prices will not only reduce transportation costs but also increase disposable income for motorists. He emphasized that the price reduction will have a ripple effect on the economy by lowering production costs, boosting demand for goods and services, and ultimately improving the quality of life for Nigerians.
In addition, Dr. Harry praised Dangote Refinery for its role in stimulating competition in the downstream sector through earlier price reductions. He highlighted a report by PETROAN’s technical pricing team, which indicated that competitive pricing strategies can help businesses maintain a strategic advantage, attract new customers, and increase sales.
