The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of Premium Motor Spirit (PMS), also known as petrol, at its filling stations to N860 per litre. This price cut aligns with the rate at which the Dangote Petroleum Refinery sells petrol through MRS filling stations in Lagos.
Investigations on Monday confirmed that several NNPC retail outlets in Lagos adjusted their pump price from N945 per litre on Sunday to N860 per litre. This move comes shortly after Dangote Refinery reduced its ex-depot petrol price from N890 to N825 per litre, further intensifying competition in the sector.
Despite the significant price reduction, NNPC has yet to issue an official statement on the development. Calls and messages sent to NNPC spokesperson Olufemi Soneye for clarification were unanswered. However, the Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, confirmed the price cut.
“It is true; NNPC is now selling petrol at N860 in its stations. Although this price change is not yet reflected on their online portal, I was informed that they are working on updating it,” Fashola said.
Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged the development. “They reduced the pump price earlier this morning, but I am yet to get all the details,” he stated.
Dangote Refinery Continues to Influence Market Prices
Since its operational launch in December 2024, the 650,000 barrels-per-day Dangote Refinery has consistently influenced Nigeria’s petrol market, frequently adjusting prices based on market conditions. This latest price reduction by NNPC is seen as a response to Dangote’s pricing strategy.
Before the Dangote Refinery began operations, NNPC had a monopoly over petrol pricing and supply in the country. However, a report by Energy Intelligence highlighted that the new refinery has “broken NNPC’s tight monopoly on refining and product marketing in Nigeria” and has also shifted the balance of gasoline supply across the Atlantic Basin.
Market observations indicate that many consumers have begun preferring Dangote’s petrol over NNPC’s. Some motorists claim that petrol from the Dangote refinery lasts longer in fuel tanks, leading to long queues at private stations like MRS while queues at NNPC outlets have significantly reduced.
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A Healthy Competition or a Threat to Competitors?
Reacting to the ongoing price war, Fashola described it as a positive development but warned against using it as a strategy to eliminate competitors.
“It’s a good development, and I hope they can sustain it. However, I pray it is not a tactic to push competitors out of the market. If this price reduction is maintained, it will benefit the public because the economic hardship in Nigeria is unbearable,” he said.
Meanwhile, the Dangote Refinery has announced a refund of N65 per litre to customers who purchased petrol at a higher rate before the latest price cut. Fashola believes this measure will help ease concerns among marketers affected by sudden price drops.
“That will address some of the complaints from marketers. However, those who bought the product four or five days ago may not benefit from the refund,” he explained.
Price Reductions Vary Across Nigeria
In Abuja, NNPC has also reduced its petrol price, though not as significantly as in Lagos. The new price at NNPC stations in the Federal Capital Territory now stands at N880 per litre, down from N965 per litre last week.
At the NNPC retail outlet in Federal Housing, Kubwa, the price dropped by N85 per litre. A pump attendant at the station confirmed that the adjustment was implemented on Monday afternoon.
However, independent marketers are struggling to match these reductions. Many filling stations in Abuja, including those along Airport Road, Jabi, and Wuse, have maintained their previous rates or made only slight adjustments.
For example, A.A Rano along Airport Road reduced its price from N970 per litre to N945, while Shema, located opposite Dunamis Church, sold at N960 per litre. Bovas retained its price at N970 per litre. At Jabi, Mobil sold at N960 per litre, and Conoil set its price at N950 per litre.