Days after Dangote’s PMS price crash, NNPCL follows
By BASHIR ADEFAKA
Still following the footsteps of Dangote, the NNPCL earlier crashed its price from unbelievably N1,060 to N1,040 against privately owned Dangote’s N899.50 before now, at the weekend, deciding a further reduction to N899 as criticisms persisted from Nigerians, who saw the government’s side as being most unfair to citizens.
Four days after the now celebrated oil sector game changer, Alhaji Aliko Dangote’s oil refinery, crashed its petrol pump price per litre for the second time in 24 days from N970 to N899.50, the government’s company, Nigerian National Petroleum Corporation Limited (NNPCL), has reportedly followed suit doing its own.
Information about the NNPCL’s decision, however, was not directly revealed by the company but by a third party that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is.
According to the PETROAN, the Nigerian National Petroleum Company Limited (NNPCL) reduced its ex-depot price of petrol to N899 per litre in Lagos.
In a statement on Sunday December 22 by Joseph Obele, PETROAN’s National Public Relations Officer (PRO), the association described the price reduction by NNPCL as a response to the competitive impact of deregulation.
The association said the new “regime” has led to increased competition in the downstream sector.
“The move is expected to spark a price war among oil marketers, ultimately benefiting consumers,” PETROAN said.
“The company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from N1,020 to N899 per liter, a move that has been commended by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).”
According to the association, a document released by the NNPCL commercial department shows a reduction based on the regional pricing scheme.
Citing the document, PETROAN said the price of the product was cut down to N899 in Lagos, N970 in Oghara, N970 in Port Harcourt, and N970 in Calabar.
Speaking on the price cut, Billy Gillis-Harry, PETROAN’s president, described it as a welcome development “that 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,” he said.
He added, “We commend NNPCL for responding to our call for affordable PMS prices.”
Harry also commended the Dangote refinery for its earlier price reduction, which he said had assisted in stimulating competition in the downstream sector.
On his part, Sunny Nkpe, PETROAN’s zonal chairman of the eastern zone, said as the price reduction takes effect, the association’s zonal and its state executive councils would continue to monitor the situation.
Nkpe added that they would ensure that the benefits of the price cut are passed on to the end-users and that the overall downstream sector remains stable and conducive for business.
Also, Obele expressed optimism that petrol prices would 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”.
Obele described the downward trend as a price war, emphasising that the price reduction by Dangote refinery and NNPC demonstrates the benefits of competition and advocates for the immediate privatisation of government-owned refineries.
It will be recalled that NNPCL like other government agencies in the oil sector, after many attempts to present Dangote as producer of substandard products and one with costliest price of petrol, subsided in their alleged negative propaganda against the Kano State-born business mogul.
Dangote sailed the troubled waters of those experiences as he proved to Nigerians, not only that his products are the purest among petroleum products being sold to them but also, that he has the ability to halt importation of from into the country with his available products and sell same at less prices than the government sells.
Dangote first crashed his price from N990 to N970 on November 24 at the time government persistently sold at N1,060 per litre and under 24 days further crashed same from N970 depot price to N899.50 per litre on Thursday December 19, 2024.
Still following the footsteps of Dangote, the NNPCL earlier crashed its price from unbelievably N1,060 to N1,040 against privately owned Dangote’s N899.50 before now, at the weekend, deciding a further reduction to N899 as criticisms persisted from Nigerians, who saw the government’s side as being most unfair to citizens.
