NNPCL has reduced petrol prices to ₦899 per litre, aligning with Dangote Refinery's recent price cut. This move, reflecting the impact of deregulation in Nigeria's fuel sector, is expected to foster competition and lower prices further, benefiting consumers. Price reductions continue to be driven by market forces.
The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of petrol from ₦1,020 to ₦899 per litre, joining Dangote Refinery's recent price cut. This decision, announced on December 21, 2024, is aimed at keeping fuel prices competitive as the country’s downstream sector faces increased market deregulation.
The reduction, confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), aligns NNPCL’s price with Dangote Refinery’s adjustment, which had previously set its ex-depot price at ₦899 per litre for marketers. Despite this, certain regions, including Warri, Oghara, Port Harcourt, and Calabar, will experience slightly higher prices of ₦970 per litre due to regional pricing variations.
Dr. Joseph Obele, the spokesperson for PETROAN, explained that NNPCL’s price reduction was a direct response to the competitive forces generated by deregulation, which has led to more choices for fuel consumers. He also expressed optimism that further reductions would be forthcoming, bolstered by a decline in global crude oil prices and the strengthening of the Nigerian naira.
Industry experts believe this ongoing price competition, spurred by deregulation, could result in more affordable fuel for consumers in the coming months. As the price war continues, many are calling for the privatization of government-run refineries to enhance market efficiency and foster long-term price stability.