Nigerians can expect further reductions in the price of Premium Motor Spirit (PMS), commonly known as petrol, as the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery engage in a price war. This development comes as both companies have recently slashed their petrol prices, sparking competition that is set to benefit consumers.
On Monday, NNPCL announced new petrol prices of N860 and N880 per litre in Lagos, the Federal Capital Territory (FCT), Abuja, and other parts of the country. This follows a similar move by Dangote Refinery, which reduced its petrol price to N880 per litre at its partner outlets, including MRS filling stations, just six days ago.
The price adjustments have been reflected at NNPCL retail outlets along the Kubwa Expressway in Abuja, the Central Business District, and other locations, where petrol is now being sold at N880 per litre. This has created a competitive environment, allowing Nigerians to choose between NNPCL and Dangote Refinery outlets based on pricing and convenience.
The National President of the Petroleum Retailers Outlets Owners Association (PETROAN), Billy Gillis-Harry, and his counterpart from the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, have both expressed optimism about the situation. They believe the competition between NNPCL and Dangote Refinery will lead to further price reductions, providing much-needed relief to Nigerians grappling with the high cost of living.
Gillis-Harry described the price war as a “necessary business matrix” that has brought smiles to the faces of Nigerians. “The new price has been reflected on our portal. This price reduction will be a huge relief to many Nigerians struggling to make ends meet. The reduction in PMS prices is expected to positively impact Nigerians’ lives. We are engaging NNPCL to also bring down the petrol prices for the benefit of Nigerians and marketers,” he told DAILY POST.
Maigandi, on his part, highlighted the benefits of deregulation in the downstream oil and gas sector. “It is not surprising because Dangote petrol is selling at that rate. This is what we have been telling the government to deregulate the sector. The price will start coming down. Investors have started coming. The reduction in petrol price means joy to Nigerians and marketers,” he said.
The price war between NNPCL and Dangote Refinery began on September 15, 2024, when Dangote Refinery commenced the rollout of PMS. Since then, Dangote petrol has been sold at a more advantageous price compared to NNPCL, forcing the state-owned company to adjust its pricing strategy to remain competitive.
This development is seen as a positive outcome of market competition, which is expected to drive down prices further and improve the affordability of petrol for Nigerians. It also underscores the importance of deregulation in fostering a competitive and efficient downstream oil sector.
As the price war intensifies, stakeholders are hopeful that the benefits will extend beyond petrol prices, potentially leading to improved service delivery and innovation in the sector.
