This is coming at a time Saudi Arabia also reduced the price of its oil
In a bid to woo more world customers, the Nigerian National Petroleum Corporation (NNPC) has cut the price of crude oil.
This move is coming just two weeks after Saudi Arabia cut the prices for November oil sales to Asia and Northwest Europe and for most grades to other regions.
The Punch reports that 20 out of 26 oil grades monitored by Bloomberg revealed that the NNPC lowered its official selling prices by at least $1 per barrel.
The selling price of Qua Iboe for November was reduced to a 17 cent premium to the benchmark Dated Brent, according to the price list, from $1.07.
Also, the price of Bonny Light was reduced to a seven cent premium and Forcados to a 41 cent discount to Dated Brent.
Mele Kyari who is the Group General Manager for the oil-marketing division of the NNPC said the reduction was to gain the market share.
The rise in militancy that has led to the destruction of oil and gas pipelines has affected Nigeria’s oil production.
EshanUl-Haq who is the principal consultant at KBC Process Technology Limited said: “It is a bearish signal for the light, sweet market. In order to capture a higher share of the market, official selling prices have to come down.”
Dr.Ibe Kachikwu who is the minister of state for petroleum said the country would be exempt from any production cuts, though final details of such an agreement have yet to be worked out.
Meanwhile, the National Household Kerosene Price Watch for September 2016 prepared by the National Bureau of Statistics (NBS) has shown that oil marketers have refused to sell at approved price by NNPC.
The marketers are selling the commodity at N288.68 per litre as against the N150 per litre price that NNPC approved.
It reports further that despite the call by NNPC group managing director, Maikanti Baru on petroleum marketers not to sell the commodity above the approved price because issues surrounding the scarcity of kerosene had been addressed, the sellers have remained adamant.
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