PETROAN calls on NNPCL to cut petrol prices amid Dangote Refinery’s price reduction

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Nigerian National Petroleum Company Limited (NNPCL) to reduce its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol.

This appeal comes in the wake of Dangote Refinery’s recent decision to lower its ex-depot price from ₦970 per litre to ₦899.50 per litre.

In a statement issued on Thursday, PETROAN spokesperson Joseph Obele commended Dangote Refinery for the ₦71 per litre price reduction. The association hailed the move as a timely relief for Nigerians grappling with rising living costs, especially during the holiday season.

“This price reduction, a decrease of ₦71 per litre from the initial price of ₦970, is a significant relief for motorists and Nigerians at large, especially during the holiday season,” PETROAN stated.

Billy Gillis-Harry, the National President of PETROAN, emphasized that the reduction would help alleviate the financial burden on citizens and ease transportation costs.

“The price reduction will alleviate the suffering of Nigerians and reduce the cost of living and transportation during this festive period,” he remarked.

PETROAN urged NNPCL to review its ex-depot price of ₦1,030 per litre to foster healthy competition in the downstream sector. According to Gillis-Harry, competitive pricing will lead to better outcomes for consumers and promote efficiency within the sector.

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“The reduction in petrol prices by Dangote Refinery has shown that competition can benefit consumers. We call on NNPCL to facilitate the privatisation of the Port Harcourt Refinery, which will introduce innovative consumer incentives, improve product quality, and enhance service delivery,” he said.

PETROAN also pushed for the privatisation of the Port Harcourt Refinery, owned by NNPCL, to encourage market-driven reforms and improve the availability of petroleum products.

The association believes that the entry of private refineries like Dangote has already demonstrated the potential benefits of competition in the petroleum sector, urging the government to build on this momentum.

The call for competitive pricing follows the recent operational rollout of petrol by Dangote Refinery in September 2024 and the Port Harcourt Refinery in November 2024. While Dangote’s ex-depot price stands at ₦899.50 per litre, NNPCL’s remains significantly higher at ₦1,030 per litre.

Industry analysts have noted that the ongoing adjustments in ex-depot pricing could directly impact retail petrol prices, affecting transportation and overall living costs.

With the festive season in full swing, any reductions in petrol prices are likely to be welcomed by Nigerians.

PETROAN’s appeal underscores the need for a competitive and transparent pricing regime to ensure that the benefits of local refining capacity reach the average consumer.

The association’s call also highlights broader reforms needed to make Nigeria’s downstream petroleum sector more consumer-friendly and efficient.