NNPCL Faces Pressure to Cut Petrol Prices Amid Dangote Rivalry
The Nigerian National Petroleum Company Limited might adjust the price of premium motor spirit downwards as MRS filling station, in collaboration with Dangote Refinery, has announced a reduction in fuel pump prices on Monday.
Billy Gillis-Harry, the National President of Petroleum Products Retail Outlet Owners Association, and Chinedu Ukadike, spokesperson for Independent Petroleum Marketers Association of Nigeria, made this known in separate exclusive interviews with Naijaeyes.
This announcement by MRS filling station follows a fuel price reduction on Monday, the first since the beginning of 2025.
In the oil firm’s official announcement on its X account on Monday, it stated that its pump price in Lagos has been reduced to N925 per litre; this is N933 in the South West, N945 in the North, and N955 in the South-East. This represents a reduction from about N970 that the company had sold before.
The announcement comes but a few weeks after the Dangote Refinery reported an ex-depot price adjustment of N870 from N970 per litre on February 1, 2025.
In reaction, Gillis-Harry and Ukadike expressed optimism that an announcement regarding the PMS price reduction by NNPCL would soon follow, basically to remain relevant in the country’s downstream sector.
Gillis-Harry stated: “NNPC has no choice but to reduce petrol retail prices because it is not possible to see a product at a cheaper price and still go for NNPCL.”
Ukadike on his part mentioned that since the price war between Dangote Refinery and NNPCL was still on, the latter had nothing else to do but cut prices.
“It is likely that NNPCL will drop its price because there is a price war with Dangote Refinery. Once Dangote Refinery announces a price drop, NNPC will follow suit,” he pointed out.
Why petrol price reductions by Dangote and NNPCL is not impacting transportation costs, other
With regard to MRS being involved in reducing petrol prices, Gillis-Harry mentioned that the transportation cost and prices of food have been constant.
He went on to say the major reason why fuel price reductions do not affect food prices and transportation costs is the weak purchasing power of the Nigerian people.
“If you watch, the cost of transportation has not reduced in spite of the reduction of fuel at the retail market. That tells you that the purchasing power of Nigerians is very weak.
“If you ask me, I think we need to get Nigerians into productive ventures like farming, fishing, and technology.
“Go to the park, you will see that the price of transportation cost has not been impacted by the fuel reduction,” he stated.
Drawing into the long-term impact of the petrol price reduction on transportation, Ukadike mentioned that it may take gradual effects on goods and services.
“The impact will be gradual; it will eventually impact transportation and others,” he noted.
Concerns about frequent petrol price adjustments
Gillis-Harry frowned at the frequency with which members of the oil and gas sector keep revising petrol prices.
He stated that continuing adjustments are going to influence petrol security.
He went further to lament arbitrary price increase decisions, which ultimately will cause marketers serious losses as they might lift fuel stock before the arrival of a fresh stock.
“There was a lot of fuel that was purchased at the old price that is still in the system, and they have not been sold.
“Marketers cannot sell below the cost price. It is completely impossible for someone to buy a product at N970 per litre and sell below the purchase price.
“MRS that is trying to deepen the distribution process with PETROAN and Dangote Refinery still has the same challenge of the buying power,” he said in an interview with the DAILY POST.
DAILY POST recalls that Dangote Refinery, last December, had reduced its petrol ex-depot price from N899.50 per litre to N970.
NNPCL also followed in announcing a PMS price cut for oil markets.
Last-minute price cuts for fuel in the latter part of 2024 were evidenced by said rivalry between NNPCL and Dangote.
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