Petrol prices to drop as more fuel-carrying vessels arrive Nigeria next week

Major and independent fuel dealers have asserted that significant shipments of Premium Motor Spirit, commonly known as petrol, are set to arrive in Nigeria starting next week.

These consignments, imported by prominent oil marketers, have the potential to drive down the commodity's price in the market.

This follows Legit.ng's report about private depots lowering their petrol prices, now ranging between N495 and N496 per litre, down from the previous range of N502 to N503 per litre.

In addition, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that they intend to engage in competitive importation of petrol, directly challenging both the Major Oil Marketers Association of Nigeria (MOMAN) and the Nigerian National Petroleum Company Limited (NNPCL).

It emphasized that this competitive approach would lead to a significant reduction in the cost of Premium Motor Spirit (PMS).

More imports, reduced prices

Speaking on the matter, Mohammed Shuaibu, the Secretary of IPMAN Abuja-Suleja stated that the price of Premium Motor Spirit (PMS) is expected to decrease in the upcoming weeks with the arrival of imports from marketers in Nigeria.

According to The Punch, he verified that certain private depot owners have already started reducing the price of the commodity, which is lower than the rate set by the NNPCL.

He noted that since the sector has been deregulated, there will be stiff competition between the players.

He said: And, of course, I know that sooner than later, the price of petrol will be forced down, particularly once the products from marketers start hitting the country from next week. This is because market forces will now determine the price.

It is not going to be solely imported by NNPCL again, for instance, this week, the private depots reduced their prices, different from what NNPCL is selling. So there is a reduction lower than what NNPC is selling.

According to Shuaibu, IPMAN is fully prepared to engage in competition with the NNPCL and major marketers in order to drive down the nationwide cost of petrol.

He also acknowledged a decline in the consumption of petrol, attributing it to the reduced purchasing power of citizens when it comes to accessing the commodity.