NNPCL Reduces Petrol Price by N60 Amid Market Competition

The Nigerian National Petroleum Company Limited (NNPCL) has announced another reduction in the pump price of Premium Motor Spirit (PMS), cutting the retail price by N60 per litre as competition in the downstream petroleum sector continues to intensify.

A market survey conducted on Sunday showed that NNPCL filling stations now dispense petrol at N1,150 per litre, down from the previous price of N1,210 per litre.

The latest adjustment is the second made by the national oil company in less than two weeks and brings its cumulative reduction between June 27 and July 5 to N110 per litre.

The price review comes on the heels of a fresh reduction by Dangote Refinery, which recently lowered its ex-gantry petrol price by N50, bringing it down from N1,125 to N1,075 per litre. The adjustment marked the refinery’s fourth downward review of its depot price in recent weeks.

The downward trend has also spread to other fuel marketers. NIPCO, AA Rano and Ranoil have adjusted their pump prices to between N1,205 and 1,240 per litre, reflecting the increasing competition among suppliers in the deregulated market.

Industry observers attribute the decline in fuel prices partly to the easing of global crude oil prices. At the time of reporting, Brent crude traded at about $72 per barrel, while West Texas Intermediate (WTI) crude hovered around $68 per barrel.

Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) has reiterated its concern over the pricing behaviour of petroleum marketers during the recent spike in international oil prices.

In a statement issued on Sunday, the commission noted that marketers were quick to raise pump prices when global crude prices surged earlier in the year but expressed optimism that the current decline in international oil prices would translate into sustained relief for consumers.

The FCCPC recalled that petrol prices rose sharply from between N800 and N900 per litre to as high as N1,350 to N1,500 per litre, while diesel sold for up to N2,000 per litre, following heightened tensions in the Gulf between April and May.

The latest price cuts by NNPCL and Dangote Refinery are expected to increase pressure on other marketers to review their rates downward as competition for market share continues.