Marketers Optimistic About Further Petrol Price Cuts Amid Deregulation
Fuel marketers in Nigeria have expressed optimism about further reductions in petrol prices as competition intensifies in the deregulated petroleum sector.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the potential for continued price decreases.
Gillis-Harry noted that recent price cuts by MRS and the Nigerian National Petroleum Company Limited (NNPCL) are signs of things to come.
“Petrol prices of N935 per litre at MRS and N965 per litre at NNPCL retail outlets have come to stay,” he said. “This trend will trickle down nationwide. In the coming days, the price of petrol may reduce below N935 per litre.”
Ukadike attributed the reductions to the effects of market competition under deregulation, describing it as a significant milestone for the oil and gas sector.
“The petrol price reduction spree between Dangote Refinery and NNPCL is the beauty of deregulation. It shows that price reduction is a key market strategy,” Ukadike stated.
He added that the dynamics of demand and supply will continue to play a crucial role in determining prices.
“We are expected to see more price reductions in the coming days as market forces remain key in the deregulated petroleum sector,” Ukadike told DAILY.
The remarks come amid growing anticipation for the increased supply of petroleum products and potential benefits to consumers, driven by competition among key players like Dangote Refinery and NNPCL.
The deregulation of the petroleum sector, a policy shift aimed at removing subsidies and allowing market forces to set prices, has opened the industry to greater competition, with marketers leveraging price adjustments as a strategy to remain competitive.
