The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of Premium Motor Spirit (PMS) or petrol by N75 per litre nationwide due to changes in the cost of supply.
The NNPC retailers have lowered their price to N1,260 per litre from N1,335. The reduced price has taken effect in many fuel stations including those located along Kubwa Expressway, Berger in Wuse Zone 6, and Zone 4 in Abuja.
This is because there was a price reduction in the price of Dangote refinery of ex-depot (gantry) price to N1,175 per litre, which occurred a week before the recent decrease in PMS price.
This price reduction is said to be influenced by falling crude oil prices and improvement in supply.
The price reduction has started being reflected by independent marketers. There are some filling stations that sell petrol at the range of N1,241 to N1,300 per litre.
In the case of micro, small, and medium enterprises (MSMEs), the drop is anticipated to bring in some relief, particularly for companies dependent on transport, logistics, and petrol-based generators.
A fall in fuel prices can help in lowering operational costs and increase efficiency.
It will be interesting to see if the fall in fuel prices persists and is followed by further drops in other regions.
