Prof. Billy Okoye, the former Managing Director of Nigerian National Petroleum Company Limited (NNPCL) Retail, has stated that the implementation of full deregulation in Nigeria’s oil and gas sector will drive down petrol prices.
He emphasized that the newly revived Port Harcourt and Dangote Refineries are expected to lower ex-depot Premium Motor Spirit (PMS) prices below the current N1030 and N970 per litre.
Speaking at a Petroleum Products Retail Outlet Owners Association (PETROAN) event in Abuja on Friday, Okoye credited President Bola Ahmed Tinubu’s May 2023 removal of fuel subsidies as the catalyst for this shift.
He explained that the commencement of domestic refinery operations marks the full adoption of deregulation, with market forces now determining fuel prices.
Okoye dismissed speculation about a price war between NNPCL and Dangote Refinery, noting that competition will benefit Nigerians by reducing costs.
Drawing a parallel with the telecom industry, he likened the expected price drop to the reduction in SIM card costs following market competition.
“This competition, with Dangote Refinery and NNPC refineries coming on board, will lead to significant price reductions in petroleum products. Nigerians will soon reap the benefits,” he stated.
PETROAN also hinted at an imminent reduction in PMS prices. This follows NNPCL’s recent announcement of crude oil processing at the Port Harcourt Refinery and a reduction in its ex-depot PMS price to N1030 per litre. Meanwhile, Dangote Refinery, which began operations in September 2024, has lowered its ex-depot price to N970 per litre.
Currently, Nigerians pay between N1060 and N1,115 for PMS at filling stations, but these developments signal a positive shift in affordability.
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