The Nigerian National Petroleum Company Limited has reduced the pump price of Premium Motor Spirit (petrol) at its filling stations to align with the price set by the Dangote Petroleum Refinery.
Investigations by our correspondents revealed that some NNPC retail outlets adjusted their petrol pump price to N860 per litre on Monday, matching the rate at which Dangote sells petrol at MRS filling stations in Lagos.
Although NNPC Retail has not officially announced the price change, reports indicate that its stations in Lagos lowered their pump price from N945 per litre on Sunday to N860 per litre. This adjustment follows Dangote Refinery’s decision to reduce its ex-depot petrol price from N890 to N825 per litre last week.
Efforts to reach NNPC spokesperson Olufemi Soneye for confirmation were unsuccessful as he neither answered calls nor responded to messages.
However, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, confirmed the development.
“It is true, NNPC is selling petrol at N860 in the filling stations. Though this has not been reflected on the portal, they told me they are working on updating it. I spoke with them,” Fashola stated.
Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said, “They reduced the pump price earlier this (Monday) morning, but I’m yet to get the details.”
Dangote Refinery’s latest price reduction last Wednesday set a new price benchmark for the petrol market in Nigeria. Since December 2024, the refinery has been influencing pricing in the downstream sector, frequently adjusting prices in response to market conditions.
It has been observed that NNPC reacts to market dynamics by lowering its price whenever Dangote Refinery implements a reduction. In recent weeks, queues at NNPC stations have dwindled, with motorists shifting to private filling stations such as MRS, where Dangote petrol is reportedly perceived to last longer.
Before Dangote Refinery commenced operations, NNPC controlled petrol pricing in Nigeria’s regulated petroleum sector. However, a report by Energy Intelligence described the 650,000-barrel-per-day Dangote Refinery as a transformative force in both Nigeria’s downstream sector and the Atlantic Basin oil products market.
The report noted that the refinery has disrupted NNPC’s longstanding monopoly on refining and petroleum marketing in Nigeria, reshaping gasoline trade flows in the Atlantic Basin and exerting pressure on European refining margins.
At present, only the Dangote Refinery and NNPC’s Port Harcourt Refinery produce petrol locally. However, NNPC recently disclosed that it continues to buy petrol from Dangote Refinery for its Lagos stations and has not imported fuel this year, though it may do so if necessary.
Speaking on the ongoing price competition, IPMAN Vice President Fashola described it as a positive development but cautioned against the elimination of competitors.
“It’s a good development. I just hope that they can sustain it. I pray it will not be a way of eliminating competitors. So, I pray that we sustain it. If we can sustain it, it’s good for everybody. It will be good for the public, and everyone will be happy to have PMS at a reduced rate because the hardship is too much,” he stated.
Following its reduction of the ex-depot price to N825 per litre, Dangote Refinery on Monday announced a refund of N65 per litre to marketers who had purchased petrol above the new rate.
Fashola explained that the move aimed to address complaints from marketers affected by sudden price reductions.
“That will address the complaints of some marketers to some extent. I know it may not capture some people. Some may have bought the product four or five days ago, and I don’t think those transactions will be included, even if they still have the product in their tanks.
“But it’s better than nothing. Those who have paid but not yet lifted the product will be protected. They will be reimbursed at the new rate. It is a good development,” he added.
In Abuja, NNPC also adjusted its petrol price to N880 per litre. The company reduced the price at its outlets from N965 per litre last week to N880 per litre on Monday.
A visit to the NNPC retail outlet in Federal Housing, Kubwa, revealed that the price had dropped by N85 per litre. A pump attendant confirmed to our correspondent that the adjustment was made on Monday afternoon.
However, independent marketers have struggled to implement similar price reductions. Visits to several filling stations in Abuja, including those along Airport Road, Jabi, and Wuse, showed that most stations maintained their previous prices, while a few implemented slight reductions or halted sales altogether.
At Airport Road, A.A Rano reduced its price from N970 to N945 per litre, while Shema, located opposite Dunamis Church, sold petrol at N960 per litre. Bovas maintained its previous price of N970 per litre.
In Jabi, Mobil adjusted its price to N960 per litre, while Conoil reduced its price to N950 per litre.
