The Nigerian National Petroleum Company Limited, NNPCL, has dropped depot prices for Premium Motor Spirit, also known as petrol from N1,020 to N899 per litre.
In a statement made on Saturday, the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, affirmed this move, which comes days after the Dangote Refinery lowered its pricing to N899 as well.
Reduction based on the regional pricing system is indicated in the statement, which is signed by Dr. Joseph Obele, the association’s national public relations officer, and quotes a document issued by NNPCL’s commercial department.
Marketers will purchase the product for N899 per litre, according to the price, which is the same as what the Dangote refinery was offering a few days prior.
Nonetheless, marketers who buy from Warri, Oghara, Port Harcourt, and Calabar would pay N970 per litre to offtake products.
“In response to the competitive impact of deregulation in the downstream sector, the Nigerian National Petroleum Company Limited has taken a significant step,” the statement said.
The ex-depot price of Premium Motor Spirit was recently lowered by the corporation from N1,020 to N899 per litre.
NNPCL’s price cut is interpreted as a reaction to the competitive effects of deregulation, which have heightened rivalry in the downstream industry.
“The national oil firm’s price reduction is perceived as a reaction to the competitive impact of deregulation, which has resulted in increased competition in the downstream sector,” Obele said.
It is anticipated that the action will lead to a pricing war among oil marketers, which will ultimately help consumers.
