Petroleum product marketers are expressing concerns over financial losses following the Nigerian National Petroleum Company Limited’s (NNPCL) recent price reduction of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja. The decrease from the previous price of N925 in Lagos and N950 in Abuja took effect on Easter Monday.
This price drop comes shortly after Dangote Refinery also lowered its ex-depot price from N865 to N835 per litre, prompting a price war between the two companies. NNPC’s new price is now N10 lower than Dangote’s, further intensifying competition in the market.
While some filling stations have already adjusted to the new prices, others are still selling at the previous rates, as they are allowed to exhaust their old stock before implementing the changes. Hammed Fashola, the National Vice President of the Independent Marketers Association of Nigeria, confirmed the price reduction and noted that many filling station operators are currently losing money due to these changes.
Fashola acknowledged that while the price cut benefits consumers by making fuel more affordable, it negatively impacts marketers. He emphasized the challenges they face in managing their stock and pricing strategy amidst fluctuating fuel prices.
When asked about the possibility of further price reductions, Fashola refrained from making predictions, pointing out that factors such as crude oil prices and exchange rates play significant roles in determining petrol prices.
