Expect petrol price drop, ex-NNPCL assures Nigerians

Former Managing Director of the Nigerian National Petroleum Corporation (NNPCL) Retail, Prof. Billy Okoye, has stated that the full deregulation of Nigeria’s oil and gas industry will lead to a significant reduction in the prices of Premium Motor Spirit (PMS) from the current N1030 and N970 per litre.

In an interview with DAILY POST on Friday, Okoye explained that the recent revival of the Port Harcourt and Dangote refineries would force the prices of petrol to fall due to market-driven forces.

He recalled that President Bola Ahmed Tinubu’s announcement in May 2023 on the removal of fuel subsidies was a key step toward the full deregulation of the sector.

According to Okoye, the commencement of operations at both refineries marked the arrival of this deregulated environment, where market demand and supply dictate prices, rather than government intervention.

Okoye assured that the increase in domestic refining capacity would soon lead to lower petrol prices. He emphasized that competition between the refineries would benefit Nigerians by driving down costs, likening the situation to the drastic reduction in SIM card prices following increased competition in the telecommunications sector.

“When the president, Bola Ahmed Tinubu made that announcement, subsidy was gone, what it means is that the market is fully deregulated.

“So with Dangote Refinery coming on stream and NNPC Refinery (Port Harcourt refinery) coming on stream, what does it mean that the market is fully deregulated?

“You buy where you see that is most economically viable for you, and the market now determines the price.

“So there’s no price war. It’s the same thing as in any market where the forces of demand and supply will determine the price.

“So it’s a good thing for Nigeria. And I tell you that within the shortest possible time, the price of petroleum products will crash. This is exactly what happened with the SIM card.

“Before, SIM cards were N5,000, N30,000. Today, with the competition, SIM cards are almost free now.

“So with this competition in this industry, Dangote Refinery coming up, modular refineries will also start producing PMS, and with all the NNPC refineries coming on board now, you find out that the price is going to crash and Nigerians will start to enjoy,” he said.