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The Nigerian National Petroleum Company (NNPCL) Limited has reduced the retail price of premium motor spirit (PMS) or petrol across its retail outlets in the country. In Lagos, petrol now sells at N860 per litre, down from N945 per litre, while in Abuja, it sells at N880 per litre, down from N965 per litre.
This price cut comes barely two weeks after the NNPCL reduced the pump price in Lagos to N945 per litre and five days after the Dangote Refinery implemented a price reduction across MRS stations and affiliate filling stations. As a result, NNPCL retail stations and MRS now sell petrol at the same price per litre in Lagos.
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Dr. Muda Yusuf, Chief Executive Officer of the Center for the Promotion of Private Enterprise (CPPE), believes this development represents a major gain from deregulation. However, he cautioned that the evolving competition must be between producers, not between producers and importers, to ensure fair competition. “The competition will be healthy if it is between producers and not between producer and importer… It won’t be a fair competition because the cost environment will not be the same; so there has to be a level playing field,” Yusuf said.
A petrol attendant at the NNPCL retail station in Ikoyi confirmed the price cut, stating, “As at this morning, we were still selling at N945, but by mid-day, we got the signal to reduce to N860 per litre; so that’s the price we are selling now.
Commercial driver Audu also confirmed buying petrol at the NNPCL station in Lekki at N860 per litre, saying, “At about 2pm yesterday, the station in Lekki had displayed the new price; so I bought at the new price.”
In Abuja, motorist Bunmi Solomon confirmed buying petrol at N880 per litre, stating, “At about 4pm yesterday, I bought petrol at Lugbe for N880 per litre.”
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Yusuf noted that the price cut can be sustained if market fundamentals remain stable. “The continued price cut can be sustained as far as the fundamentals of the market can sustain it. The cut we are experiencing is a function of foreign exchange, international crude oil price. If these two factors are stable, then the price reduction can be sustained.”
Stakeholders view this development as a positive step for the Nigerian public, highlighting the benefits of deregulation in determining commodity prices. While welcoming the price cut, they emphasize the need for caution to ensure healthy competition. As Yusuf put it, “This is a good one for the Nigerian people.”
The reduction in petrol prices is expected to have a positive impact on the economy, as it will reduce the cost of transportation and production for businesses. This, in turn, could lead to a decrease in the prices of goods and services.
The Nigerian government has been working to deregulate the downstream sector of the petroleum industry, which has led to the emergence of private players in the market. This move is expected to increase competition and drive down prices.
The NNPC’s decision to reduce petrol prices is seen as a step in the right direction, as it will help to reduce the financial burden on Nigerians. However, some experts have cautioned that the price reduction may not be sustainable in the long term, as it depends on various factors such as global crude oil prices and foreign exchange rates.
Despite these concerns, the price reduction has been welcomed by many Nigerians, who have been struggling to cope with the high cost of living. As one motorist noted, “This is a big relief for us. We have been paying so much for petrol, and it’s good to see that the price is coming down.”
The NNPC has assured Nigerians that it will continue to work to ensure that petrol prices remain stable and affordable. As the company’s spokesperson noted, “We are committed to making sure that Nigerians have access to affordable petrol. We will continue to work to ensure that prices remain stable and competitive.”
In conclusion, the reduction in petrol prices by the NNPC is a welcome development for Nigerians, who have been struggling to cope with the high cost of living. While there are concerns about the sustainability of the price reduction, it is clear that the move is a step in the right direction. As Yusuf noted, “This is a good one for the Nigerian people.”
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