BREAKING: Oil Marketers Hint at Further Petrol Price Cuts as NNPC, Dangote Announce Cheaper Fuel

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has indicated that the recent petrol price reduction by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Petroleum Refinery is expected to drive competition among marketers, ultimately benefiting consumers.

This perspective was shared in separate statements by the association’s National Public Relations Officer, Dr. Joseph Obele, and its National President, Dr. Billy Gillis Hary.

Last week, Dangote Refinery lowered the price of petrol for marketers from N970 to N899.50 per litre, aiming to ease transportation costs during the festive period.

Similarly, just days ago, NNPC Limited, in collaboration with MRS, announced a reduction in petrol prices to N935 per litre across its retail outlets nationwide.

Price cuts spark hope for lower petrol costs

Dr. Joseph Obele noted that the NNPC’s actions represent a notable response to the competitive dynamics introduced by deregulation in the downstream sector.

He referred to the situation as a “price war” and highlighted that the price cuts by Dangote Refinery and NNPCL showcase the advantages of healthy competition.

According to The Nation, Obele also called for the swift privatization of government-owned refineries.

He said:

“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.”

Dr. Joseph Obele commended the NNPCL for addressing the demand for more affordable petrol prices.

He expressed confidence that the cost of petrol would decrease further by the end of January 2025, citing the global drop in crude oil prices and the recent strengthening of the naira against the dollar.

Petrol price cuts, a relief to Nigerians

Dr. Billy Gillis-Hary described the price reduction as a positive development, noting that it would provide much-needed relief to motorists and Nigerians, especially during the holiday season.

He said:

“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.”

Gillis-Hary also praised Dangote Refinery for its earlier decision to lower prices, noting that this move had effectively spurred competition within the downstream sector.