NNPC Cuts Oil Price In New Sales Strategy

NNPC decided to reduce oil price to attract more customers. They did this after Saudi Arabia cut their prices for oil sales to Asia and Northwest Europe. About 20 out of 26 oil grades monitored by Bloomberg revealed that the NNPC lowered its official selling prices by at least $1 per barrel

In November selling price of Qua Iboe 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.

Principal Consultant at KBC Process Technology Limited, EshanUl-Haq says: “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.”

Reports show that some oil marketers are still selling the commodity at rates as high as N288.68 per liter instead of the N150 per liter price approved by The Nigerian National Petroleum Corporation.