NNPC Reduces Petrol Prices, Now Cheaper than Dangote's Rate
- The NNPC Limited has once again reduced the pump price for Premium Motor Spirit (PMS) for Nigerians
- The new price comes days after Dangote refinery slashed petrol price for its partners below N900 per litre
- The new prices by NNPC once again show the importance of price competition and benefit to Nigerians
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian National Petroleum Company Limited (NNPCL) has slashed its petrol pump price to N880 per litre on Monday, April 21 for its Lagos retail stations.
This new price represents a N30 reduction from the previous pump price of N910 per litre, and now means that NNPC sells petrol cheaper than Dangote's partners in Lagos.
Source: Getty Images
While in Abuja the pump price for petrol has reduced to N935 per litre from the previous price of N950 per litre .
Kunle, a filling station attendant in Lagos who confirmed the new price to Legit.ng, said:
"We now sell petrol at N880, the instruction was given on Monday afternoon."
The Cable reports that in Abuja, at the Airport Road, Lugbe, and the Federal Housing, Kubwa, the price of the product dropped to N935 per litre.
This is the second adjustment in a week and comes days after the Dangote refinery announced a new ex-depot price and also for its partners' filling stations.
Like NNPC, other fuel stations slash prices
Earlier, Legit.ng reported that Ardova, Mobil, Petrocam, Hyden, Technooiland Matrix have been asked to reduce prices.
Dangote instructed its partners to sell at the following prices:
- Lagos: N890 per litre
- South-West: N900 per litre
- North-West and North-Central: N910 per litre
- South-East, South-South and North-East: N920 per litre
Dangote, NNPC price war resumes to benefit Nigerians
The new price reduction resumes the ongoing price war between the NNPC, Dangote Refinery, signifying a pivotal shift in the nation's downstream oil sector.
The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, believes that the price war between Dangote Refinery and NNPCL will benefit the consumer more.
He said:
"In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established."
He also maintained that Dangote Refinery’s reduction in the pump price of petrol is due to production cost efficiency, among other factors.
Dangote/NNPC must stop sudden fuel price reduction
Ealier, Legit.ng reported that Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have condemned the persistent fluctuations in petrol prices by the Dangote Refinery and the NNPC, warning that the instability is causing massive losses and discouraging investment in the sector.
PETROAN has therefore called for a regulatory framework that mandates price stability for at least six months.
Speaking on the changes, PETROAN Publicity Secretary Joseph Obele, in a statement, said that the changes have created uncertainty among investors, who are wary of unpredictable market conditions.
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Source: Legit.ng
