The Nigerian National Petroleum Company Limited (NNPCL) has dropped the retail price of premium motor spirit (petrol) to ?965 per litre across its outlets in the Federal Capital Territory.

This marks the second price reduction in less than two weeks, following an earlier decrease from ?1,060 earlier this month.

Customers at NNPCL’s mega stations along Wuse Zone 4 and Olusegun Obasanjo Way were seen rushing to take advantage of the new price despite long queues.

Meanwhile, independent and major marketers continued to sell petrol at prices ranging from ?1,030 to ?1,070, as observed at various locations.

The Guardian reported that the Independent Petroleum Marketer Association of Nigeria (IPMAN) announced plans to begin selling petrol at ?935 per litre following a revised agreement with Dangote Petroleum Refinery.

IPMAN President Maigandi Garima noted that the reduction in the refinery’s ex-depot price and a uniform distribution plan would allow marketers to sell at the lower price while covering logistics costs of ?36 per litre.

“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k,” he said.

“The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday.”

Garima said the downstream sector competition, being witnessed currently, was expected by marketers due to deregulation, adding that it would see the price of fuel dropping continuously.

“That is the reason why we have been asking the government to allow private sectors to participate in the refinery business.” (The Guardian)