The former Managing Director of NNPC Retail, Prof. Billy Okoye, has predicted that deregulation in Nigeria’s oil and gas sector will significantly reduce Premium Motor Spirit (PMS) ex-depot prices.
Speaking on Friday at an event organized by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) in Abuja, Okoye said the current prices of N1,030 and N970 per litre at depots will drop with the full implementation of deregulation.
Okoye attributed the shift to President Bola Ahmed Tinubu’s announcement in May 2023, which marked the removal of fuel subsidies, paving the way for a market-driven oil sector.
He noted that the commencement of operations at the Dangote Refinery and the newly revived Port Harcourt Refinery signals a new era where market forces determine fuel prices.
“The removal of subsidies by President Tinubu effectively means the market is now fully deregulated,” Okoye explained.
“With Dangote Refinery and Port Harcourt Refinery operational, buyers can source products where it is most economically viable, and prices will be determined by demand and supply dynamics.”
Okoye dismissed claims of a price war between the NNPC Limited and Dangote Refinery, stating that competition in the sector will ultimately benefit Nigerians. He likened the expected price reduction in PMS to the significant drop in SIM card costs over time due to market competition.
“This competition is a good development for Nigeria,” Okoye said. “As more refineries, including modular ones, begin production, we will see prices drop significantly, and Nigerians will reap the benefits.”
He emphasized that with the full deregulation of the oil industry, Nigerians can expect lower fuel costs in the near future as domestic refineries ramp up production.