Nigeria petrol price war erupts as NNPC slashes pump prices to align with Dangote Refinery, bringing relief to consumers amidst economic hardship

[dropcap]T[/dropcap]he Nigerian National Petroleum Company Limited (NNPC) has significantly reduced the pump prices of Premium Motor Spirit (petrol) at its retail stations, aligning with the pricing structure set by the Dangote Petroleum Refinery.

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This move signals an intensifying fuel price war, aimed at providing relief to consumers.

Reports confirm that NNPC retail outlets across Lagos adjusted their petrol pump price to N860 per litre on Monday, matching the rate offered by Dangote Refinery at MRS filling stations.

This represents a substantial decrease from the previous N945 per litre, observed as recently as Sunday. The price reduction follows Dangote Refinery’s decision to lower its ex-depot petrol price from N890 to N825 per litre.

While NNPC spokesperson Olufemi Soneye remained unavailable for comment, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, confirmed the development.

“It is true, NNPC is selling petrol at N860 in the filling stations,” Fashola stated, adding that the company was updating its portal to reflect the new pricing.

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, also acknowledged the price reduction, stating, “They reduced the pump price earlier this (Monday) morning, but I’m yet to get the details.”

This price adjustment comes after Dangote Refinery announced another price cut last Wednesday, effectively dictating the price regime for the Nigerian petrol market.

Since December 2024, Dangote Refinery has taken a leading role in the downstream sector, adjusting prices as deemed necessary. NNPC has been observed to react to these market pressures by lowering its prices to match Dangote’s.

The recent price differential had led to a shift in consumer behavior, with queues vanishing from NNPC stations and consumers opting for private filling stations like MRS, citing the perceived longer-lasting quality of Dangote petrol.

Before Dangote Refinery’s operation, NNPC traditionally dictated petrol prices under a regulated market. However, a report by Energy Intelligence highlighted the transformative impact of the 650,000 barrel per day Dangote Refinery on Nigeria’s downstream sector and the Atlantic Basin oil products market, breaking NNPC’s monopoly and impacting European margins.

Currently, Dangote Refinery and NNPC’s Port Harcourt Refinery are the only petrol producers in Nigeria. NNPC recently clarified that it purchases petrol from Dangote Refinery for its Lagos stations and has not imported fuel this year, though it will do so if necessary.

IPMAN’s Fashola described the price war as a positive development, but cautioned against the elimination of competitors. He urged the players to maintain a healthy rivalry to alleviate the hardship faced by Nigerians.

Dangote Refinery has also announced a refund of N65 per litre to those who purchased petrol above the new rate, addressing complaints from marketers affected by the sudden price reduction.

Also read: NNPC denies claims of importing 200 million litres of petrol

In Abuja, NNPC retail outlets reduced their petrol price to N880 per litre, down from N965. However, independent marketers in Abuja are struggling to adjust their prices, with some stations maintaining their old rates or not selling at all.