Petroleum product marketers are grappling with mounting losses following a recent price cut by the Nigerian National Petroleum Company Limited (NNPC), which reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N880 per litre in Lagos and N935 in Abuja.
Previously, NNPC retail outlets in Lagos sold petrol at N925 per litre, while outlets in Abuja dispensed it at N950. The price reduction, which took effect on Easter Monday, marks a significant shift in Nigeria’s downstream petroleum sector.
Dangote Refinery Sparks Competitive Price Cuts
This latest move by NNPC comes shortly after the Dangote Refinery slashed its ex-depot price from N865 to N835 per litre. The $20 billion refinery also directed its key partners—including MRS, Heyden, and Ardova—to adjust their pump prices accordingly:
- N890 per litre in Lagos
- N900 in the South-West
- N910 in the South-South
- N920 in the North-East
With NNPC now undercutting Dangote’s Lagos price by N10, industry watchers are anticipating a renewed fuel price war between the two giants.
Marketers Express Concerns Over Losses
Despite the consumer-friendly reduction, independent marketers have voiced concerns over the financial impact. Some NNPC stations are still selling at older rates as they work to clear existing stock, according to reports.
Confirming the development, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the NNPC Retail division had officially notified outlets to implement the new pricing.
“It’s confirmed that NNPC has reduced PMS prices to N880 in Lagos. They sent messages to their retail outlets. Some have already adjusted, while others are selling at old prices like N910, pending stock depletion,” Fashola stated.
He emphasized that while the price cut benefits consumers, marketers are incurring significant losses.
“Yes, it’s a positive development for Nigerians. Fuel is now more affordable. But for us as marketers, it’s painful. We are losing money—no doubt about that.”
Deregulation Brings Market Dynamics—and Uncertainty
Fashola highlighted that price fluctuations are part of Nigeria’s deregulated fuel market, and while beneficial for consumers, they expose marketers to financial risks.
“That’s the reality of deregulation. We can’t avoid it. What we’re doing now is adjusting prices to minimize our losses while offloading old stock,” he added.
When asked if petrol prices might soon fall further—possibly to N800 or N700 per litre, Fashola declined to speculate, citing volatile crude oil prices and the foreign exchange rate as key factors.
