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The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in petrol pump prices, with Premium Motor Spirit (PMS) now priced at N860 per litre, and has advised Nigerians to expect further decreases in the coming weeks.
This change is attributed to the recent strengthening of the naira against the dollar and ongoing market conditions.
NNPCL spokesperson Femi Soneye informed journalist that the corporation has "consistently lowered prices in most areas due to market dynamics."
Soneye clarified that the NNPCL has avoided releasing press statements for minor price changes, as fluctuating prices are a normal aspect of their operations as an energy company.
"Price adjustments at the pump are a routine part of this process, influenced by market forces," he stated.
He added that the regular price review is part of the strategy the energy company is implementing to ensure energy security and maintain a competitive edge for potential companies and investors.
The nation’s energy sector underwent significant changes at the start of President Bola Tinubu’s administration in May 2023 when he announced the elimination of fuel subsidies.
The price of petrol, which was previously N145, surged to N550 and subsequently surpassed N1,000, leading to higher transportation costs and prompting many companies to reduce their employees' on-site working days.
In response to the challenges posed by his energy policy, Tinubu introduced Compressed Natural Gas (CNG) vehicles as a more affordable alternative to petrol, although many Nigerians remain hesitant to switch their vehicles to CNG engines.
However, the anticipated operations of the Dangote Refinery in the fourth quarter of 2024 seemed to mitigate the impact of fuel subsidy removal, with the local oil facility announcing plans to sell petrol to marketers for below N1000 per litre during the Christmas and New Year period.
The recent appreciation of the local currency in the global market—from N1,700 to N1,500 per dollar—has also played a significant role in the reduction of fuel prices nationwide.
