In a strategic move to stay competitive in Nigeria’s evolving downstream sector, the Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N890 to N860 per litre.
Market Forces Driving Price Adjustments
Confirming the development in an interview with Vanguard, NNPCL’s spokesperson, Olufemi Soneye, emphasized that price adjustments are a routine practice under Nigeria’s deregulated fuel market. He noted that NNPC, as an energy company, does not issue public statements for such changes, as they are dictated by market dynamics.
Soneye explained that this price reduction aligns with NNPC’s commitment to ensuring energy security while fostering an open and competitive business environment.
Dangote Refinery Leads the Charge
This price cut follows Dangote Refinery’s decision to reduce its ex-depot price by N65 per litre, which took effect on March 1, 2025. The refinery’s move triggered adjustments at partner retail outlets, leading to new pump prices:
- Lagos: N860/litre
- South-West: N870/litre
- North: N880/litre
- South-South & South-East: N890/litre
Dangote Refinery stated that the reduction was part of efforts to ease financial pressure on Nigerians, particularly in the spirit of Ramadan celebrations. The move also aligns with President Bola Ahmed Tinubu’s economic recovery agenda, aiming to lower living costs.
Series of Price Cuts to Ease Nigerians’ Burden
Dangote Refinery has consistently reduced petrol prices to support consumers:
- February 2025: Price dropped twice, first by N60, then by another N65.
- December 2024: A festive season reduction saw PMS fall by N70.50 per litre, from N970 to N899.50/litre.
Price War Among Major Retailers
Dangote’s latest price slash has impacted independent and major marketers differently:
- MRS Holdings stations now sell at:
- Lagos: N860
- South-West: N870
- North: N880
- South-South & South-East: N890
- AP (Ardova Petroleum) & Heyden stations offer:
- Lagos: N865
- South-West: N875
- North: N885
- South-South & South-East: N895
Naira Strengthening & Oil Prices Influence Market Trends
Speaking to Vanguard, Chief Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the price cuts to:
✅ Naira’s recent appreciation against the dollar
✅ Falling crude oil prices in the international market
Ukadike noted that while price deregulation is strengthening, independent marketers are suffering losses due to sudden price reductions. Many had stocked fuel at higher prices, with some having up to three million litres in storage or en route when the price slash took effect.
Petroleum Retailers Welcome Price Drop
The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has commended the move, citing its positive impact on transportation costs and household expenses. PETROAN President, Dr. Billy Gillis-Harry, praised NNPC Retail Ltd for its proactive response to market demands.
He also hailed Dangote Refinery’s N16 billion refund policy, which compensates retailers who purchased fuel before the price drop. The N65/litre refund applies to over 200,000 metric tonnes of PMS bought at old rates, cushioning losses for marketers.
What This Means for Nigerians
With fuel prices dropping, Nigerians can expect:
✔ Lower transportation costs
✔ Reduced inflationary pressure on goods & services
✔ Increased competition among oil marketers
As Nigeria navigates its deregulated petroleum sector, price swings will continue to reflect global market trends and domestic economic policies.