In a move that has surprised many Nigerians, the Nigerian National Petroleum Company Limited (NNPC Ltd) has reduced the pump price of Premium Motor Spirit (PMS), also known as petrol, from ₦955 to ₦900 per litre.
This adjustment comes just 48 hours after the state-owned oil company implemented a sharp hike, raising the price from ₦865 to ₦955 per litre across its retail outlets.
A visit to NNPC filling stations along the Kubwa Expressway in Abuja yesterday confirmed the price drop. Petrol attendants at several locations verified the change.
According to Punch’s report, an attendant said : “We were selling at ₦955 per litre yesterday, but the new rate is now ₦900.”
The price swing has also had a ripple effect on independent marketers. While some private outlets such as Ranoil and Empire Energy in Gwarinpa reduced their rates slightly to ₦955 and ₦950 per litre respectively, others like MRS continued selling at ₦885 per litre—suggesting uneven reactions to market changes across the board.
The Nigerian downstream oil sector, already unsteady due to the removal of fuel subsidies and a deregulated pricing regime, appears to be grappling with volatility driven largely by unstable ex-depot prices.
These prices, which influence how much marketers pay to lift products from depots, play a pivotal role in determining final pump prices.
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Industry stakeholders suggest the recent drop may be temporary unless structural issues affecting pricing—particularly transparency in the supply chain and regulation—are addressed.
Calls have intensified for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant bodies to step in and provide oversight that ensures pricing stability and protects consumers from arbitrary increases.
The NNPC has yet to release an official statement explaining the rationale behind the sudden price cut, which many see as a tacit response to public outcry over the hike earlier this week.
With ongoing changes in global crude oil dynamics, foreign exchange rates, and domestic refining capacities—including the operationalization of the Dangote Refinery—analysts predict that PMS prices in Nigeria will likely remain fluid for the foreseeable future.
Image Credit: Punch Newspappers
