The Nigerian National Petroleum Company (NNPC) Limited has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly referred to as petrol, from ₦1,020 to ₦899 per litre. 

This strategic decision, aligned with the competitive forces brought about by deregulation, aims to foster a more dynamic petroleum market while providing cost relief to consumers.

Joseph Obele, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed the development in a statement on Saturday. 

According to Obele, this adjustment signals a significant shift within the downstream petroleum sector, where competition among players has been steadily increasing.

This announcement coincides with a similar move by Dangote Refinery, which recently partnered with MRS to lower its ex-depot price from ₦970 to ₦899.50 per litre, setting a uniform retail price of ₦935 per litre across its outlets nationwide. 

Dangote Refinery’s pricing strategy, coupled with NNPC’s decision, reflects the growing influence of deregulation in shaping a more consumer-focused industry.

Under the revised pricing structure, petrol will now be sold at ₦899 per litre in Lagos, while consumers in cities like Warri, Oghara, Port Harcourt, and Calabar will pay ₦970 per litre. PETROAN commended NNPC for the reduction, describing it as a positive step toward making fuel more accessible and affordable for Nigerians, especially during challenging economic times.

Obele expressed optimism about the long-term benefits of the price reduction, noting that further decreases in petrol prices could be expected by the end of January 2025. He attributed this potential decline to two critical factors: the recent global reduction in crude oil prices and the steady appreciation of the naira against the US dollar. Both factors are expected to have a direct impact on the cost of fuel imports, further lowering prices for consumers.