…Price cuts by Dangote likely pushed NNPC to adjust its prices to maintain market relevance and consumer patronage
…Besides, both actions might indicate efforts to stabilize fuel prices in Nigeria, especially given that price fluctuations impact transportation costs and inflation
SAT DEC 21 2024-theGBJournal| The Nigerian National Petroleum Company Limited (NNPCL) has cut Premium Motor Spirit (petrol) price by 12% to N899 per litre from N1,020, 50k lower than Dangote Refinery price.
The price cut comes barely two days after Dangote Refinery announced a price slash per litre of petrol to N899.50K.
”This move may signify the beginning of a competitive market dynamic between NNPC and private refineries, particularly the Dangote Refinery,” according to analysts who spoke to the G&BJournal in Lagos.
”Price cuts by Dangote likely pushed NNPC to adjust its prices to maintain market relevance and consumer patronage,” they said.
Besides, both actions might indicate efforts to stabilize fuel prices in Nigeria, especially given that price fluctuations impact transportation costs and inflation.
According to the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria’s (PETROAN), Dr Joseph Obele, the move was a significant step in response to the competitive impact of deregulation in the downstream sector.
“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers” Obele added in a statement on Saturday.
The price reduction has been commended by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The association said in the statement that the document released by the NNPC commercial department indicated a reduction based on the regional pricing scheme.
The pricing scheme will see consumers in Lagos buying the product at ₦899.0k, Warri: N970.0K, Port Harcourt:N970.0 and in Calabar at N970.0K.
The National President of PETROAN, Dr. Billy Gillis Harry describes the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season.
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