The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price for Premium Motor Spirit (PMS), also known as petrol, to N899 per litre.

The product previously sold at N1,020.

According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the new price was fixed by the NNPCL.

Quoting a document released by NNPCL’s Commercial Department, the association’s National Public Relations Officer, Dr Joseph Obele, said the reduction was based on regional pricing scheme, dislcosing that under the arrangement, it would sell for N970 per litre in parts of the South South region.

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The development comes two days after the Dangote Refinery in Lagos slashed petrol price to N899.50k for marketers.

“In response to the competitive impact of deregulation in the downstream sector, the Nigerian National Petroleum Company Limited has taken a significant step,” the statement said.

“The national oil firm’s price reduction is perceived as a reaction to the competitive impact of deregulation, which has resulted in increased competition in the downstream sector.”

According to the National President of PETROAN, Dr. Billy Gillis Hary, the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season.

“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” he said.

“We commend NNPCL for responding to our call for affordable PMS prices.”

He listed the benefits of the price reduction to consumers to include:- Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income, Increased economic activity: Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services, – Improved standard of living: The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.