In a move offering marginal relief to motorists, the Nigerian National Petroleum Company (NNPC) Limited has announced another reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol.
Second Price Cut in Weeks
The national oil company has slashed its price to N905 per litre, down from the previous rate of N910. This marks the second such adjustment in a short period, following an earlier reduction from N920. In the nation's capital, Abuja, consumers also saw a decrease, with prices falling from N940 to N930 per litre.
Despite these consecutive cuts, the relief felt by many Nigerians remains minimal. The new NNPC rate still positions it as one of the more expensive options in the market, failing to significantly undercut its competitors.
Independent Marketers Offer Cheaper Alternatives
Checks across various filling stations in Lagos reveal a competitive landscape where many marketers are selling fuel at rates lower than the NNPC. Ardova Plc is reportedly dispensing petrol at N890 per litre in areas like Egbeda. Similarly, stations operated by MRS and Mobil are selling at N895 per litre.
Other prominent players, including Petrocam and Hyde Energy, have set their prices at N900 per litre. This has created a common pricing band between N900 and N910 for many independent stations, making the NNPC's N905 rate less attractive to cost-conscious drivers.
Kunle Ajayi, a commercial driver, echoed the sentiments of many: "I bought fuel at N905 today. Yes, it's lower than before, but the difference is too small to feel. Transport fares cannot come down because nothing significant has changed."
Wholesale Price Drops Signal Potential for Further Reductions
The retail price cuts are being driven by a downward trend at the wholesale level. Reports indicate that several major depots have reduced their ex-depot prices. Key suppliers like Dangote Refinery, AIPEC, NIPCO Lagos, and Aiteo have lowered their rates to N840 per litre.
Other depot operators, including Pinnacle Oil and Rainoil Lagos, have also implemented price reductions, now selling at N842 and N844 per litre, respectively. This easing of wholesale costs is a positive indicator that the recent retail price cuts may not be the last.
Market analysts suggest that if the current supply stabilisation continues and private refiners, particularly the Dangote Refinery, maintain their aggressive market entry, further price competition is inevitable. The Dangote facility has already achieved a significant milestone, producing and distributing over 70 million litres of petrol and diesel daily, a volume that now exceeds Nigeria's total consumption.
This intensified competition in the downstream oil sector is slowly creating a more dynamic market, though Nigerian consumers are still waiting for a more substantial drop in fuel prices to ease the high cost of transportation and logistics.
