
Mkpoikana Udoma
Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has commended Dangote Refinery for reducing the ex-depot price of Premium Motor Spirit, PMS, from N950 to N890, describing it as a crucial relief for Nigerians struggling with high fuel costs and economic hardship.
Recall that Dangote Refinery at the weekend had announced N60 reduction in the gantry price of its PMS, citing the decrease in the prices of crude oil in the international market
Reacting, the National President of PETROAN, Dr. Billy Gillis Harry, said the price cut would help reduce transportation costs, lower inflation, and boost economic activities.
The PETROAN boss urged other refinery operators and petroleum importers to follow suit to sustain competition in the deregulated market.
“With this reduction, Nigerians can expect some relief in the cost of transportation and goods. We encourage other players in the sector to adjust their prices accordingly to ensure affordability for consumers,” he said.
Harry stressed that a competitive market remains the backbone of a deregulated petroleum sector. “Competition is the beauty of a deregulated economy. If other refinery operators and importers want to stay in business, they must consider reducing their prices as well,” he stated.
He emphasized that the move by Dangote Refinery would have a ripple effect across various sectors, making life easier for Nigerians. “The cost of petrol directly affects every aspect of the economy. This price cut will alleviate the suffering of Nigerians, reduce the cost of living and transportation, and bring some stability to household expenses,” he added.
According to PETROAN, a reduction in PMS prices will lead to a decrease in the cost of goods and services, allowing Nigerians to have more disposable income for essential needs.
Beyond easing financial burdens on households, PETROAN noted that the lower fuel price could drive economic expansion. “A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost,” Harry explained.
The association also highlighted the potential impact on inflation, saying that lower fuel costs would reduce production expenses, which could, in turn, stabilize the prices of goods and services. “This will help reduce the country’s inflation rate, making life more affordable for Nigerians and increasing their purchasing power,” PETROAN said.
PETROAN reaffirmed its commitment to advocating for policies that promote affordability, efficiency, and sustainability in the downstream petroleum sector.