The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has announced a price reduction for Premium Motor Spirit (PMS) by the Nigerian National Petroleum Company Limited (NNPCL), lowering the cost for marketers from ₦1,045 to ₦1,030 per litre.
The update was disclosed by PETROAN’s National President, Dr. Billy Harry, during a strategic meeting and award ceremony held in Abuja. Dr. Harry expressed optimism about further price cuts, stating, “We are still hoping and pushing that it will come down even lower.”
Competition in Pricing
Dr. Harry highlighted the competitive dynamics of the petroleum market, pointing out that Dangote Refinery and Petrochemicals offers PMS to marketers at ₦970 per litre. However, Dangote imposes a minimum purchase requirement of two million litres, making NNPCL a more flexible option despite its slightly higher price.
“Most of our members struggle to raise ₦50 million or ₦60 million to buy products,” Dr. Harry explained. “With NNPCL, we can buy smaller quantities, sell quickly, and return for more, unlike the bulk requirements at Dangote.”
NNPCL has further facilitated access by reopening its portal for product lifting, enabling marketers to purchase and distribute fuel efficiently. According to Dr. Harry, these measures contribute to faster turnover and greater market accessibility for smaller operators.
Local Refining Over Imports
PETROAN has also decided to suspend plans for fuel importation, citing the availability of locally refined products. Dr. Harry emphasized the association’s preference for domestic refineries, including Dangote Refinery, Port Harcourt Refinery, and Warri Refinery, to mitigate challenges related to sourcing foreign exchange for imports.
“We won’t import if there’s a reliable local supply. It’s more sustainable to transact in Naira through our local refineries,” Dr. Harry stated.
Outlook for the Petroleum Sector
Dr. Harry expressed confidence that Nigeria’s free market dynamics would drive PMS prices down further. “As I speak, NNPCL is already programming for marketers based on the current price,” he noted.
This development reflects a positive step towards stabilizing the PMS market, with local refining playing a pivotal role in reducing dependence on imports and alleviating foreign exchange pressures. PETROAN’s commitment to supporting local refineries aligns with the broader goal of achieving a more self-sufficient and efficient petroleum sector in Nigeria.
