The price of Premium Motor Spirit (PMS), commonly known as petrol, witnessed a slight decrease from N640 per litre to N630 per litre. This slight drop came as a result of the Nigerian National Petroleum Company Limited (NNPCL) supplying one percent of the product directly to independent marketers, according to a report by The Nation.

The news of NNPCL's decision to provide direct petrol allocations to independent marketers sparked a positive response in the market, signaling a shift in the dynamics of the fuel sector. Alhaji Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared insights with The Nation, highlighting the impact of this strategic move.

Maigandi recalled the assurance given by NNPCL's Executive Vice President, Downstream, Dapo Segun, to provide direct product allocations under the Product Finance Initiative Allocation (PFIA). While independent marketers are entitled to 50 percent of product allocation, the allocation of just one percent from NNPCL has already begun to reshape the market landscape.

"The price has started reducing since NNPCL is giving independent marketers their direct allocation," Maigandi emphasized. "NNPCL said they will give us direct product instead of taking it to private depots to sell it to us at a higher rate."

As a result of this development, the depot price has begun to decline, dropping from the previous N640 per litre to N630 per litre. Notably, NNPCL sells petrol at N570 per litre, providing a more cost-effective option for independent marketers.

The implications of this shift are significant, particularly for independent marketers who will now have greater access to petrol without relying heavily on private depots. With NNPCL's direct allocation, independent marketers can serve their customers more efficiently, contributing to improved accessibility and affordability of petrol across the country.

Overall, the decrease in petrol prices marks a positive turn of events for Nigeria's fuel sector, offering relief to citizens and fostering a more equitable distribution of resources within the industry. As the market continues to respond favorably to these changes, there is optimism for continued progress and stability in the petrol market.