Good News: Petrol Price Crashes, Marketers Speak on NNPC's New Price

• The cost of petrol is more likely to drop as NNPC sells to marketers at the depot at a new reduced price
• The national oil company has also promised marketers that there will be more supply for them at the depot
• The most recent data from NNPC shows that in February 2024, the price of a litre of petrol increased by 157.57% compared to the previous year's price

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 decided to crash the depot price of the Premium Motor Spirit (PMS), otherwise known as petrol, from N640 per litre to N570 per litre through direct allocation to independent marketers.

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Abubakar Maigandi, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the new price, noting that NNPC has also promised more supply.

Independent marketers paid for the product at the new petrol price last week.

NNPC petrol new price

However, Maigandi noted that only 1% of products were supplied to marketers instead of the 50% product allocation.

Maigandi was quoted as saying:

"The price has started reducing since NNPCL is giving independent marketers their direct allocation. NNPCL said they will give us direct product instead of taking it to private depot to sell it to us at a higher rate.

“NNPCL has started changing the price now even though they just gave us a small quantity. We are supposed to have 50 per cent of the distribution. Let’s say they have given us one per cent. Even that 1% has started changing the situation of the market.’

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"Depot price has started reducing. It was previously N640 per litre. But when the rumour came, we will start getting our direct allocation, they reduced it to N630 per litre. NNPCL sells at N570 per litre.”

He noted that with NNPCL supply, independent marketers would not have to rely on private depots for product supply, which will help bring down retail price.

Petrol sold above N700/litre in five states

Earlier, Legit.ng reported that the National Bureau of Statistics revealed that Nigerians once again paid more to buy petrol in February 2023

The data showed that the price of a litre of petrol increased by 157.57% compared to what was paid in the same month in 2023.

The highest petrol price for February was recorded in Zamfara state, followed by Kebbi and Taraba State.

Source: Legit.ng