The Nigerian National Petroleum Company Limited (NNPCL) has made a significant decision to reduce the depot price of petrol, also known as Premium Motor Spirit (PMS), from N640 per litre to N570 per litre. This reduction will be implemented through direct allocation to independent marketers, according to Abubakar Maigandi, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
In addition to lowering the price, NNPC has assured marketers of increased supply. Independent marketers have already paid for the product at the new petrol price last week, Maigandi confirmed. However, he highlighted that only 1% of the product allocation was provided to marketers instead of the expected 50%. This has led to a change in the market, albeit on a small scale.
Maigandi further explained that the depot price has decreased from N640 to N630 per litre due to the direct product allocation to independent marketers. NNPC is now selling petrol at N570 per litre. This move is expected to reduce reliance on private depots for product supply, ultimately resulting in a drop in retail prices.
Earlier data from NNPC revealed that the price of petrol surged by 157.57% in February 2024 compared to the previous year's rate. However, with NNPC's new approach and promises of increased supply, it is likely that the cost of petrol will decrease in the near future.