The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has confirmed a price reduction for Premium Motor Spirit (PMS) by the Nigerian National Petroleum Company Limited (NNPCL). In a strategic move to ease the financial burden on consumers, NNPCL has lowered the cost of PMS from ₦1,045 per litreto ₦1,030 per litre. This announcement was made on Thursday, November 28, 2024, by PETROAN’s National President, Dr. Billy Harry, during a meeting and award presentation in Abuja.
Dr. Billy Harry shared his optimism regarding the potential for further price reductions, expressing hope that the price may continue to fall. “Today, NNPCL has reduced their price to 1,030 Naira,” Harry confirmed. “We are still hoping and pushing that it will still come down low,” he added, signaling ongoing efforts to secure more favorable pricing for consumers.
The price adjustment comes at a time when the Nigerian oil market is experiencing heightened competition. Dangote Refinery and Petrochemicals, a major player in the sector, currently sells PMS to marketers at ₦970 per litre, though this price comes with a minimum purchase requirement of two million litres. In contrast, NNPCL offers more flexibility, as it does not impose such volume restrictions, making it a more accessible option for smaller retail outlets.
Harry addressed the implications of this competition and pricing structure, particularly focusing on the financial strain it places on retail outlet owners. “Because most of our members are going to be struggling to get 50 million Naira, or thereabout, or even 60 million Naira to buy products,” Harry explained. “Now, that is not what is easily affordable.” This financial hurdle highlights the challenges faced by smaller retail outlets in purchasing large quantities of fuel from suppliers like Dangote.
The PETROAN president further elaborated on the advantage of working with NNPCL, which allows for more manageable transactions. “So, we, as retail outlet owners, you can see why we are very close to NNPC,” he said. “Because we can go there and buy one product, sell, quickly turn it around, and then come back. But then, if we have to buy two million liters, we must go together.”
In a move to ease logistics and ensure availability, Harry also revealed that NNPCL has activated its portal for marketers to begin product lifting. This move is expected to streamline the process for marketers and enhance the overall distribution of petrol in the market. “And as I speak to you, they (NNPCL) are already programming for us on the current price,” Harry said, referring to the ongoing adjustments being made by the national oil company.
With increasing competition among local refineries and the ongoing price war, Harry emphasized that the free market dynamics are likely to continue driving petrol prices downward. The competition between NNPCL and Dangote Refinery is expected to keep the market competitive, benefiting consumers with lower prices. “The ongoing competition is fostering the free market system, which is likely to further drive down petrol prices,” he added.
PETROAN’s decision to prioritize locally refined products has led the association to suspend its plans to import petrol. With ample supply from domestic refineries such as Dangote, Port Harcourt, and Warri Refineries, PETROAN is opting to focus on Naira-dominated transactions instead of seeking foreign exchange for imports. “So, we are not going to start importing if there is product available,” Harry confirmed. “So, wherever is best, we are not going to be looking for dollars to start importing when we can get a Naira-dominated transaction from Dangote, from Port Harcourt Refinery, from Warri Refinery, from all the refineries in Nigeria.”
