Fresh fuel price reductions are expected in Nigeria, thanks to the deregulation of the oil and gas industry, according to Prof. Billy Okoye, former Managing Director of Nigerian National Petroleum Company Limited (NNPCL) Retail ¹. This move is anticipated to alleviate some economic pressure in the country.
The deregulation, triggered by President Bola Ahmed Tinubu's announcement in May 2023, removes fuel subsidies and allows market forces to determine prices ¹. With the recent commencement of operations at the Port Harcourt and Dangote Refineries, the prices of Premium Motor Spirit (PMS) are expected to drop below the current N1030 and N970 per liter ¹.
Okoye clarified that there's no price war between NNPCL and Dangote Refinery, but rather a natural market competition that will benefit Nigerians ¹. He likened the situation to the SIM card market, where prices plummeted due to competition, predicting that petroleum product prices will crash in the shortest possible time ¹.
The Petroleum Products Retail Outlet Owners Association (PETROAN) also hinted at a fresh PMS price reduction ¹. This development comes as a welcome relief for Nigerians, who have been grappling with economic pressures amidst rising costs of essential goods.