By Bellis Kweta
The Nigerian National Petroleum Company Limited (NNPCL) has announced a new price for Premium Motor Spirit (PMS), reflecting adjustments aimed at stabilizing the fuel market.
As disclosed by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), the price for marketers has been reduced from ₦1,045 per litre to ₦1,030 per litre, with filling stations expected to adjust their pump prices accordingly.
New Petrol Pricing Dynamics
Billy Harry, PETROAN’s National President, confirmed the price reduction during a recent strategic meeting in Abuja. “Today, NNPCL has reduced their price to ₦1,030,” Harry stated. Despite the reduction, marketers continue to advocate for further decreases, emphasizing the impact of market competition on prices.
Harry expressed optimism about a competitive market environment, highlighting the role of market deregulation. He stated, “We are still hoping and pushing that it will still come down low.” This aligns with the larger trend of diversifying the sources of petrol supply, including opening access to refineries like the Dangote Refinery.
Notably, the Dangote Refinery recently reduced its petrol price for independent marketers to ₦970 per litre, adding competitive pressure. This price adjustment has spurred discussions about how it might influence NNPC’s pricing strategy and the broader market landscape.
Market Adjustments and Challenges
The NNPC’s recent decision to terminate its exclusive purchasing agreement with the Dangote Refinery underscores its commitment to fostering competition. Marketers can now negotiate prices directly with refineries, creating a dynamic shift in the supply chain. This deregulated approach is expected to promote efficiency and stabilize pricing.
Despite these changes, challenges persist. Independent marketers have highlighted logistical issues, such as limited capacity to purchase large fuel quantities individually. Harry noted, “We are very close to NNPC because we can go there, buy one product, sell it quickly, and then come back. But if we have to buy two million litres, we must do so collectively.”
Fuel prices remain a critical concern for consumers, with reports indicating disparities across regions. While the NNPC price reduction has led to expectations of cheaper pump prices, independent outlets continue to sell petrol at varied rates, sometimes exceeding ₦1,100 per litre.
