by Chuks Oluigbo

The reduction in the ex-depot price of its Premium Motor Spirit (PMS), or petrol, by the Dangote Refinery is fuelling calls for the state-owned Nigerian National Petroleum Company Limited (NNPC) to also slash the price of its product.

On Thursday, Dangote Refinery announced the reduction of its ex-depot petrol price to N899.50 per litre from N970, marking the second price slash in less than a month. The refinery had earlier slashed its petrol price from N990 to N970 per litre in November.

Reacting to the latest price cut, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged the NNPC to revisit its PMS selling rate to foster competition in the downstream sector.

“The price reduction will alleviate the suffering of Nigerians and reduce the cost of living and transportation during this festive period,” the National President of PETROAN, Billy Gillis-Harry, said.

“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 spokesperson, Joseph Obele, said the price reduction by Dangote, a decrease of N71 per litre from the initial price of N970, was a significant relief for motorists and Nigerians at large, especially during the holiday season.

Last week, NNPC had also reduced the pump price of petrol at its retail outlets nationwide.

Reports from Abuja said petrol price at NNPC outlets in the Federal Capital Territory dropped by N20 from ₦1,060 per litre to ₦1,040 per litre.

In Benin City, NNPC retail outlets sell the product at N1,050.

Dangote Refinery began refining and rolling out petrol in September for the domestic market and currently exports to four African countries. In November, NNPC announced the commencement of production at the old Port Harcourt refinery, adding to the output of Dangote’s 650,000 barrels-per-day refinery.

Analysts project that increased local refining capacity could deepen competition, stabilise prices and reduce reliance on costly fuel imports.