The Nigerian National Petroleum Company Limited has announced a reduction in the pump price of Premium Motor Spirit, commonly known as petrol, to N860 per litre.
This move comes amid an intensifying price war among major and independent petroleum marketers, as well as fluctuations in global crude oil prices.
The new price, which came into effect on Monday, is a massive drop in the previous N920 per liter, providing Nigerians to deal with the high cost of living.
As the economy is already burdened with increased inflation and the costs of goods and services, many consumers see this as a step in the right direction.
The reduction by NNPC, which remains Nigeria’s largest fuel supplier, has triggered a fresh wave of competition among private marketers, many of whom are now adjusting their prices to stay competitive.
Last week, Dangote Petroleum Refinery and Petrochemicals Limited announced a cut in its ex-depot petrol price from N890 to N825 per litre, marking its second reduction in February.
Three Lagos filling stations where its partner off-takers have already begun selling at reduced rates were mentioned by the corporation in a public notice:
MRS: N860 per litre AP: N865 per litre, N865 litre in Heyden
As suppliers and marketers adapt to shifting customer demand and economic conditions, the petroleum industry is undergoing a strategic transition, as evidenced by the continuous price adjustments.
While the reduction has been met with optimism by some Nigerians, others remain skeptical about its long-term sustainability.
“This is good news, but we hope it’s not just a temporary move to calm the public,” said Adeola Ogunleye, a commercial bus driver in Lagos.
“Fuel prices have been too high for too long, and we need lasting solutions,” he added.
For many transporters and business owners, any reduction in fuel prices directly impacts their daily expenses and profit margins.
However, questions remain regarding whether this price cut is a temporary ploy or a sign of a more stable pricing system in the future.
For the time being, many Nigerians are keeping a tight eye on the situation, hoping that this reduction will mark the start of a more stable and reasonable fuel pricing regime.