The government is still deregulating to lower prices for NNPC.
Nigerian state-owned oil company NNPC reduced fuel prices from N113.28k per liter to N108.00k per liter, which is equivalent to a 4.8% price drop. This is the second time NNPC has lowered fuel prices in about two months. On March 19, 2020, NNPC announced that it would reduce the fuel price from N133.28 / liter to N113.28 / liter.
The current decline was announced on Twitter by the National Petroleum Corporation (NNPC) and was released Wednesday by Dr. Kennie Obateru, Group General Manager of the Group ’s Public Affairs Department, citing the words of Musa Lawan, Managing Director of the Petroleum Product Marketing Company (PPMC).
Dr Obateru said: “The new ex-factory price of Premium Motor Spirit (PMS), also known as gasoline, reflects the company ’s market strategy and has achieved more sales while complying with the Petroleum Product Price Regulatory Authority (PPPRA) price template . ”
He further explained: “The new pricing system will allow PPMC to increase sales from the billions of liters of gasoline it stores while providing affordable prices to millions of customers.”
With regard to diesel, PPMC’s MD Musa Lawan explained that the price of diesel has not been affected because it has been deregulated and determined by market forces.
Oil prices fell to an all-time low in April, triggering the demand for countries that have relaxed market requirements to automatically lower fuel prices based on market forces.