The Nigerian National Petroleum Company Limited (NNPC) has cut its pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N860 per litre across its filling stations. This decision follows a price adjustment by Dangote Petroleum Refinery, which recently reduced its petrol price to N860 per litre in Lagos.
Several NNPC retail stations in Lagos confirmed the price reduction on Monday, bringing their rates in line with Dangote’s offer. The new pricing is a significant drop from the N945 per litre previously charged at NNPC stations.
Although there has been no official announcement from the NNPC Retail Management, multiple sources within the company and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have verified the development.
The recent price slash by Dangote Petroleum Refinery has caused a ripple effect in Nigeria’s fuel market. Last week, the refinery reduced its ex-depot price to N825 per litre, forcing competitors to follow suit. Dangote’s lower prices have increased demand at stations stocking its products, drawing long queues and pushing the NNPC to adjust its prices in response.
A statement by IPMAN’s National Vice President, Hammed Fashola, confirmed that NNPC had lowered its rates to match Dangote’s, although the new price had not yet been updated on the company’s online portal.
“It is true, NNPC is selling petrol at N860 per litre at its filling stations. This is a good development, especially considering the current economic hardship,” Fashola said.
Industry experts have welcomed the competition, saying it could help drive down fuel prices in the long run. However, some stakeholders have raised concerns that the price rivalry could push smaller marketers out of the market.
Speaking to 9am News Nigeria, Fashola said,
“I hope this price competition will not be a tactic to eliminate smaller competitors. If sustained, it will be beneficial to Nigerians, but all players should be allowed to thrive.”
Meanwhile, the Dangote refinery has offered N65 per litre refunds to marketers who purchased petrol above the new price before the recent price cut. This move is expected to cushion the impact of the sudden price reduction on businesses.
The NNPC has yet to announce whether it will offer similar refunds to its customers.
Current Petrol Prices Across Abuja and Lagos
In Abuja, NNPC stations reduced their pump price to N880 per litre from N965 per litre last week. However, most independent marketers have yet to adjust their prices, with some stations still selling above N900 per litre.
In Lagos, independent stations like A.A Rano, Shema, and Bovas maintained their prices between N945 and N970 per litre, while only a few have made slight reductions.
While the price war benefits consumers, experts have warned that prolonged price competition between NNPC and Dangote Refinery could drive smaller players out of the market, leading to a private monopoly.
For now, many Nigerians are hopeful that the price reductions will offer some relief amid the country’s ongoing economic challenges.
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