Fresh Fuel Price Reduction Is Imminent – NNPC Ex-MD, Okoye Says

Prof. Billy Okoye, the former Managing Director of Nigerian National Petroleum Company Limited Retail, has given some update on the future of fuel pricing in the country.

He explained that the implementation of deregulation in Nigeria’s oil and gas industry will force the newly revived Port Harcourt and Dangote Refineries Premium Motor Spirit (Petrol) ex-depot prices below the current N1030 and N970 per litre.

Okoye disclosed this on Friday in an interview with Daily Post in Abuja at an event organised by the Petroleum Products Retail Outlet Owners Association, PETROAN.

According to him, President Bola Ahmed Tinubu’s remark on fuel subsidy removal in May 2023 set the tone for full deregulation of the oil industry.

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He explained that the coming on stream of Dangote and Port Harcourt Refinery had heralded the full implementation of deregulation, where market forces determined prices.

He stressed that the commencement of the domestic refinery will crash the prices of PMS in Nigeria.

This comes as he clarified that there is no price war between NNPCL and Dangote Refinery following the commencement of operations at Port Harcourt Refinery.

He added that the operations of both refineries were good for Nigerians as the prices of petroleum products will crash in the shortest possible time.

“When the president, Bola Ahmed Tinubu made that announcement, subsidy was gone, what it means is that the market is fully deregulated.

“So with Dangote Refinery coming on stream and NNPC Refinery (Port Harcourt refinery) coming on stream, what does it mean that the market is fully deregulated?

“You buy where you see that is most economically viable for you, and the market now determines the price.

“So there’s no price war. It’s the same thing as in any market where the forces of demand and supply will determine the price.

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“So it’s a good thing for Nigeria. And I tell you that within the shortest possible time, the price of petroleum products will crash. This is exactly what happened with the SIM card.

“Before, SIM cards were N5,000, N30,000. Today, with the competition, SIM cards are almost free now.

“So with this competition in this industry, Dangote Refinery coming up, modular refineries will also start producing PMS, and with all the NNPC refineries coming on board now, you find out that the price is going to crash and Nigerians will start to enjoy,” he told newsmen.