Petroleum Price Wars to Persist, Says Prof Oke
Professor Yemi Oke, an energy expert, has projected that competition within Nigeria's petroleum sector will persist, driving further changes in the prices of Premium Motor Spirit (PMS).
Speaking on a Channels Television special program to review the energy sector's performance in 2024, Professor Oke noted that recent trends indicate a competitive environment that benefits consumers.
“We have seen increased competitiveness in the petroleum sector, which is driving the pump price of Premium Motor Spirit (PMS) downward,” he stated. “This trend will continue as more refineries, like BUA, scale up production capacity. It’s fundamentally a matter of demand and supply. As supply outpaces demand, prices will naturally drop.”
Nigeria has recently experienced a reduction in petrol prices due to intensified competition between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).
Last week, the NNPCL reduced its ex-depot price of petrol from N1,020 to N899 per liter. Similarly, the Dangote Refinery, in partnership with MRS, set its retail price at N935 per liter, following an ex-depot price reduction from N970 to N899.50 per liter.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed these price adjustments. IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, described the changes as a positive development for both consumers and independent marketers.
The Dangote Refinery, with a production capacity of 650,000 barrels per day (BPD), is the largest single-train refinery globally and plays a critical role in shaping Nigeria’s petroleum market dynamics.
Professor Oke emphasized that crude oil prices hovering around $70 per barrel would likely result in further stabilization or a decline in petrol prices. However, he noted that the NNPCL has yet to fully reflect these new prices at filling stations.
As competition in the sector deepens, experts and stakeholders anticipate continued benefits for Nigerian consumers, with the potential for more stable and affordable energy costs in the future.
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