The long-awaited competition in the downstream segment of the Nigerian oil and gas sector may have finally started, with petrol retailers confirming on Saturday that the Nigerian National Petroleum Company Limited (NNPC) has reduced the ex-depot price of its petrol to N899 per litre, barely three days after the Dangote refinery announced a reduction to N899.50 per litre.
Dangote Refinery is also partnering with MRS Oil to reduce the pump price of petrol, just as the President of the Dangote Industries Limited, Aliko Dangote, attributed the reduction in prices of petroleum products in the country to the naira-for-crude deal recently reached by stakeholders in the sector and commended President Bola Tinubu for the overall positive impact the deal is having on the Nigerian economy.
This is coming as the NNPCL has debunked a report that it stopped loading its gantries at the Port Harcourt refinery, describing it as a figment of the imagination of some persons who want to induce artificial scarcity of petrol.
NNPCL’s recently rehabilitated Port Harcourt refinery first began selling at N1,045 per litre (ex-depot), before it reduced to N1,030, and then N1,020 per litre before the latest reduction to N899 per litre.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which confirmed the new development, described it as a ‘significant step’, pointing out that it was in response to the competitive impact of deregulation in the downstream sector.
PETROAN, in a statement signed by its national spokesman, Dr Joseph Obele, stated that under the new pricing, the NNPC’s ex-depot price is N899 per litre in Lagos and N970 in Warri, Oghara, Port Harcourt, and Calabar.
According to the group of petrol retailers, the move is expected to spark a ‘price war’ among oil marketers, ultimately benefiting consumers of petroleum products.
“The company (NNPC) recently reduced the ex-depot price of petrol from N1,020 to N899 per litre, a move that has been commended by PETROAN. PETROAN hails the NNPC for responding to the call for affordable Premium Motor Spirit (PMS) prices.
“A document released by NNPC’s commercial department indicates a reduction based on regional pricing scheme as: Lagos: 899.0; Warri: 970.0; Oghara: 970.0; PH: 970.0 and Calabar 970.0,” it added.
Describing the price reduction as a welcome development that will bring relief to motorists and Nigerians during the holiday season, the Chairman of PETROAN, Dr Billy Gillis-Harry said it was a demonstration of the NNPCL’s commitment to making petroleum products more affordable for Nigerians.
With the price reduction, he said there will be a cut in transportation costs, motorists will spend less on fuel, and there will be increased disposable income as well as a rise in economic activities.
“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford necessities and enjoy a better quality of life,” Gillis-Harry argued.
While highlighting the pros and cons of competitive pricing, PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
Also yesterday, the NNPC denied a report that it had stopped loading its gantries at the Port Harcourt refinery, describing it as a figment of the imagination of some persons who want to induce artificial scarcity.
“The attention of the NNPC has been drawn to reports in a section of the media alleging that the old Port Harcourt refinery which was re-streamed two months ago has been shut down. We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.
“Preparation for the day’s loading operation is currently ongoing. Members of the public are advised to discountenance such reports as they are the figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians,” the Chief Corporate Communications Officer of the oil firm, Olufemi Soneye, stated.
Meanwhile, the President of Dangote Industries Limited, Aliko Dangote, has commended Tinubu for the overall positive impact the crude-for-naira deal is having on the Nigerian economy.
Dangote recalled that the refinery recently reduced the price of petrol from N970 to N899.50 and provided generous credit terms to marketers.
“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added, adding that the new price has already commenced in Lagos, and will be offered nationwide from Monday.
Dangote called on other oil marketers such as the NNPC Retail and all other marketers to work with the private refinery to ensure that Nigerians enjoy high-quality petrol at discounted prices.
“The Dangote refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high-quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high-quality petroleum products that are good for their vehicles, good for their health, and good for their pockets,” Dangote explained.
In September, the Federal Executive Council (FEC) approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in the local currency.
The implementation, which commenced on October 1, the statement said, led to reduced pressure on the naira and ensured the stability of the local currency.
Emmanuel Addeh and Peter Uzoho
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