The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦1,020 to ₦899 per litre.
The decision, confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), was outlined in a document released by NNPCL’s Commercial Department.
The new pricing structure reflects a regional scheme, with some areas, such as parts of the South-South region, set to pay ₦970 per liter under the arrangement.
This move by NNPCL follows a similar reduction by the Dangote Refinery, which recently adjusted its petrol price to ₦899.50 per litre for marketers.
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In a statement, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, highlighted that the price adjustment was driven by competitive forces stemming from deregulation in the downstream petroleum sector.
“The NNPCL’s price reduction is seen as a strategic response to the competitive dynamics introduced by deregulation, which has increased market competition,” the statement read.
Speaking on the development, PETROAN National President Dr. Billy Gillis-Harry praised NNPCL’s decision, describing it as a timely relief for 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. We commend NNPCL for responding to our call for affordable PMS prices,” he said.
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Dr. Gillis-Harry highlighted the benefits of the price reduction for consumers, including lower PMS prices, which mean motorists will spend less on fuel, resulting in more disposable income. Decreased fuel prices will lower production costs and drive demand for goods and services, stimulating economic growth.
The reduction will lower the cost of living, allowing Nigerians to afford essential items and improve their overall quality of life.
Motorists will spend less on fuel, translating into lower travel expenses and increased disposable income.
Lower fuel prices will reduce production costs and drive demand for goods and services, boosting economic growth.
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The reduced cost of living, which will enable Nigerians to afford basic necessities and enjoy a better quality of life. he stated.
The price adjustment comes at a critical time as Nigerians grapple with the impacts of rising inflation and economic challenges.
Stakeholders have applauded the move, hoping it signals a trend toward greater affordability and competition in the sector.