NNPC Slashes Petrol Price To N860/litre As Competition With Dangote Intensifies

The Nigerian National Petroleum Company Limited (NNPC) has reduced the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to N825 per litre from N890 per litre as competition intensifies in Nigeria’s downstream sector.

NNPCL’s spokesperson, Olufemi Soneye, confirmed the development in an interview with Vanguard yesterday. He stated that since deregulation, the company has consistently adjusted prices in response to market dynamics.

According to him, as an energy company, it is not NNPC’s practice to issue press releases or make public announcements for routine price adjustments at the pump, as such changes are a fundamental aspect of a market-driven system.

Soneye further explained that price adjustments occur regularly, reflecting the influence of market forces. He noted that this approach ensures energy security for the nation while fostering an open and competitive environment where every Nigerian interested in the sector can participate freely in line with established regulations.

This price reduction follows a similar move by Dangote Refinery, which took effect on March 1, 2025. Dangote slashed its ex-depot price by N65 per litre, leading its partner retail outlets to adjust their pump prices. The new prices stand at N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East.

According to Dangote Refinery, this price adjustment is designed to provide essential relief to Nigerians, particularly in celebration of the Ramadan season. The move also supports President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.

The refinery emphasised that it has consistently lowered the prices of petrol and other refined petroleum products for the benefit of Nigerians. This marks the second reduction in February 2025, following a previous decrease of N60 earlier in the month.

Additionally, in December 2024, during the Yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.

The refinery also disclosed that Dangote petrol will be available at its key partners’ retail outlets at different prices. MRS Holdings stations will sell it for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East. Meanwhile, at AP (Ardova Petroleum) and Heyden stations, the product will be available for N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East.

Speaking to Vanguard yesterday, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, attributed the price reduction to the strengthening of the naira and a drop in crude oil prices in the international market.

According to Ukadike, price movements have strengthened the deregulation process, with prices now determining consumer behaviour. He explained that the dollar exchange rate has dropped in recent weeks, while crude oil prices in the international market have also declined, both of which are key factors in petrol pricing.

He noted that the strengthening of the naira has contributed to the price reduction, but independent marketers are counting their losses. The abrupt N65 per litre price cut has caused financial strain, as many independent marketers had already purchased large volumes of fuel at the previous higher price.

Some marketers had up to three million litres in stock, while others had fuel-laden trucks still in transit when the price reduction was announced. Ukadike pointed out that major marketers with strong financial backing can quickly adjust their pump prices, but independent marketers struggle to absorb such losses due to their weaker financial capacity.

On the N100 billion bridging debt, Ukadike stated that the threatened shutdown of operations by independent marketers has been put on hold following the Federal Government’s intervention. He expressed optimism that the issue would be resolved within two weeks, following discussions with the Minister of State for Petroleum (Oil).

PETROAN commends price reduction

The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) welcomed the price reductions, highlighting that it would lower transportation costs and ease financial burdens on Nigerians.

PETROAN President, Dr. Billy Gillis-Harry, commended NNPC Retail Ltd for taking proactive measures to support Nigerians. He described the price reduction as a huge relief for many citizens struggling to make ends meet.

He also applauded Dangote Refinery for implementing a refund policy to compensate retail outlet owners affected by the price reduction. According to him, Dangote Refinery has initiated a refund of N65 per litre for retail outlets that purchased PMS at the previous higher rates.

This refund applies to over 200,000 metric tonnes of PMS purchased before the price cut, amounting to a N16 billion loss absorbed by Dangote. The PETROAN president noted that this move underscores the refinery’s commitment to fair pricing and consumer welfare.

He further explained that the refund initiative will positively impact retail outlet owners, helping to mitigate losses for those who had stocked PMS at higher rates before the price adjustment.