The Nigerian National Petroleum Company Limited (NNPCL) has reduced the retail pump price of Premium Motor Spirit (PMS), commonly known as petrol.
A market survey conducted on Wednesday morning confirmed that NNPCL retail outlets across parts of Abuja and adjacent areas have revised their pump price downward from N1,395 to N1,370 per liter, marking a N25 per liter reduction by the state-owned energy company.
The price reduction has been implemented at NNPCL stations located in key areas of the Federal Capital Territory, including Wuse Zone 6, Zone 4, and Airport Junction.
The adjustment follows an announcement two days prior by the Dangote Refinery, which reduced its ex-gantry petrol price by N25 to N1,325 per liter, prompting independent retail chains like MRS to similarly adjust their pump prices to N1,370 per liter.
According to sources, Brent crude was trading at $103 per barrel, while West Texas Intermediate (WTI) crude stood at $90 per barrel when the report was filed.
Backstory…
The latest reduction in petrol prices follows a turbulent few weeks in Nigeria’s downstream petroleum market.
In early September, the Dangote Petroleum Refinery repeatedly increased its petrol gantry price, moving from ₦1,165 per litre on August 21 to ₦1,185, then ₦1,200 and ₦1,265 before making its biggest adjustment on September 12, when the price rose by ₦85 to ₦1,350 per litre.
The increases came as international crude prices climbed amid disruptions to global oil supplies linked to the Middle East conflict and reduced flows through the Strait of Hormuz. Brent crude moved above $100 and briefly went beyond $107 a barrel, increasing the cost pressure on refined petroleum products.
The direction of the market then changed. As crude prices began falling, Dangote cut its petrol gantry price by ₦25, from ₦1,350 to ₦1,325 per litre on September 21. The reduction came after Brent fell back towards $100, with expectations of diplomatic engagement between the US and Iran helping to ease some of the pressure in the international oil market
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