Landing costs reduction responsible for reduced fuel pump prices – PETROAN

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has explained the reason behind the recent reduction in fuel prices across Nigeria.

In an interview with newsmen on Tuesday, Gillis-Harry attributed the price drop at Nigerian National Petroleum Company Limited (NNPCL), MRS, and other retail filling stations in Abuja to a decline in the product’s landing cost.

He noted that when the landing cost of petrol decreases, retail prices naturally decline as well.

However, he emphasized that petroleum retailers and marketers do not reduce prices at a financial loss. He explained that price fluctuations are driven by underlying costs, statin

g that if the landing cost falls, marketers are morally bound to lower prices, though not to the extent of putting themselves out of business.

Newsmen report that NNPC Ltd and MRS filling stations in Abuja and surrounding areas adjusted their pump prices downward by N36 to N40 per litre, bringing retail rates to between N1,265 and N1,299 per litre.

This shift follows a reduction in ex-depot prices by depot owners seeking to stay competitive with Dangote Refinery’s gantry petrol price of N1,215 per litre.