The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N890 to N825 per litre. This move comes as competition in Nigeria’s downstream oil sector continues to intensify.
NNPCL Confirms Price Adjustment
NNPCL spokesperson, Olufemi Soneye, confirmed the price adjustment in an interview with Vanguard. He emphasized that since the deregulation of the petroleum sector, NNPC has routinely adjusted fuel prices in response to market forces.
“As an energy company operating in a deregulated market, we do not issue press releases or public announcements for routine price changes,” Soneye stated. He highlighted that regular price reviews are essential to maintaining energy security while fostering a competitive market where all stakeholders can participate under existing regulations.
Dangote Refinery Also Cuts Petrol Prices
NNPCL’s price reduction follows a similar adjustment by Dangote Refinery, which lowered its ex-depot price by N65 per litre effective March 1, 2025. This move has led Dangote-affiliated retail outlets to revise their pump prices as follows:
- Lagos: N860 per litre
- South-West: N870 per litre
- North: N880 per litre
- South-South & South-East: N890 per litre
Dangote Refinery stated that the price reduction aligns with efforts to provide economic relief to Nigerians, particularly during the Ramadan season. Additionally, the move supports President Bola Ahmed Tinubu’s economic recovery initiatives by easing financial burdens on the populace.
Dangote Refinery’s Commitment to Lower Prices
This marks the second price cut by Dangote Refinery in February 2025, following an earlier reduction of N60 per litre. In December 2024, the refinery had also slashed petrol prices by N70.50 per litre, from N970 to N899.50, as part of its commitment to making fuel more affordable during the festive season.
Dangote’s petrol pricing across its key partner outlets is structured as follows:
- MRS Holdings stations: N860 per litre in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East.
- AP (Ardova Petroleum) & Heyden stations: N865 per litre in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East.
Market Dynamics Driving Petrol Price Reductions
According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the recent drop in petrol prices is primarily due to the strengthening of the naira and a decline in global crude oil prices.
Chief Chinedu Ukadike, IPMAN’s Public Relations Officer, explained that the fluctuations in fuel prices reflect a true deregulated market where exchange rates and crude oil costs directly influence pump prices. However, he noted that independent marketers have been significantly impacted by the sudden N65 per litre reduction, as many had stocked fuel at higher prices.
Several independent marketers reportedly had up to three million litres of petrol in stock or in transit when the price cut was announced, leading to financial losses. While major marketers with robust financial resources can swiftly adjust to price changes, independent marketers face challenges absorbing such losses.
On the issue of the N100 billion bridging debt, Ukadike confirmed that the proposed shutdown by independent marketers has been put on hold following the Federal Government’s intervention. He expressed optimism that a resolution would be reached within two weeks after discussions with the Minister of State for Petroleum (Oil).
PETROAN Welcomes Petrol Price Reduction
The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has commended the latest price reductions, emphasizing that they will help lower transportation costs and ease the financial strain on Nigerians.
Dr. Billy Gillis-Harry, PETROAN’s President, praised NNPC Retail Ltd for its proactive approach in supporting Nigerians and described the price cut as a significant relief for struggling citizens. He also lauded Dangote Refinery’s refund initiative, which compensates retail outlet owners who had purchased PMS at higher rates before the reduction.
According to PETROAN, Dangote Refinery has initiated a refund of N65 per litre for retailers who had purchased fuel at previous rates. This refund applies to over 200,000 metric tonnes of PMS, amounting to a N16 billion loss absorbed by Dangote. The initiative underscores the refinery’s commitment to fair pricing and consumer welfare.
As Nigeria’s petroleum market continues to evolve under deregulation, fuel price adjustments will remain a reflection of market forces. With NNPC and Dangote Refinery leading the charge in price reductions, Nigerians can expect further changes influenced by currency fluctuations, global crude oil prices, and competition within the downstream sector.
