The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump prices of Premium Motor Spirit otherwise known as petrol sold at its outlets across the country as the competition in the downstream sector of the oil industry intensifies.
The change in price comes a few days after Dangote refinery announced the reduction of the ex-depot price of petrol for its partners across the country.
Naijaonpoint confirmed that some NNPC retail outlets have adjusted the pump price of petrol to its new price of N860 per litre as against the previous price of N945 per litre.
Some analysts and stakeholders have attributed the sudden reduction of pump price of petrol by the NNPC to the market pressure caused by a similar exercise by Dangote refinery, which reduced the gantry price of its petrol from N890 per litre to N825 per litre.
This is the second price cut in February as the refinery announced a gantry price reduction of N60 on February 1.
Dangote refinery described the latest N65 price cut as a strategic move aimed at providing economic relief to Nigerians ahead of the Ramadan season.
Meanwhile, the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) said the recent petrol price reduction by the Dangote refinery as well as Monday’s cut by NNPC filling stations will help tame inflation.
Also, the PETROAN boss applauded Dangote refinery for agreeing to refund N65 to retail outlet owners affected by the price reduction.
He said, “This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.
“The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members,” said Gillis-Harry, urging Nigerians to be optimistic as government reforms are already yielding results.’’
Although there is still no official response from the NNPC, the Group Chief Corporate Communications Officer of the state-owned oil firm, Olufemi Soneye, noted that these adjustments occur regularly, reflecting the influence of market forces.
Soneye said, ‘’Since deregulation, we have consistently adjusted prices in various areas in response to market dynamics. As an energy company, it is not our practice to issue press releases or make public announcements for routine price adjustments at the pump, as such changes are a fundamental aspect of a market-driven system.
‘’These adjustments occur regularly, reflecting the influence of market forces. This is precisely the strength of NNPC Ltd’s approach that ensures and guarantees energy security for our nation while fostering an open, competitive environment where every Nigerian interested in the sector can participate freely and in line with established regulations.’’
Dangote refinery had over the weekend announced that it will make a N65 per litre refund to marketers who purchased petrol, at rates higher than the earlier announced prices, so Nigerians will benefit from cheaper fuel.
Dangote refinery had over the weekend announced that it will make a N65 per litre refund to marketers who purchased petrol, at rates higher than the earlier announced prices, so Nigerians will benefit from cheaper fuel.
Dangote refinery noted that with the new gantry price of N825 per litre, it expects that no Nigerian will pay more than N900 per litre for PMS, regardless of location or petrol station.