NNPC reduces petrol prices to N860 per litre as competition heats up.

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

Olufemi Soneye, NNPCL’s spokeswoman, confirmed the development in an interview with Vanguard yesterday. He claimed that since deregulation, the corporation has continuously modified its prices in reaction to market conditions.

According to him, as an energy corporation, NNPC does not issue press releases or make public announcements for routine price changes at the pump, as such changes are a necessary part of a market-driven system.

Soneye went on to clarify that pricing modifications are made on a regular basis, reflecting the influence of market forces. He stated that this method protects the nation’s energy security while also promoting an open and competitive environment in which any Nigerian interested in the industry can freely participate in accordance with existing norms.

This price cut follows Dangote Refinery’s identical decision, which went into effect on March 1, 2025. Dangote reduced its ex-depot price by N65 per litre, prompting its retail partners to modify their pump prices. The new costs are N860 per litre in Lagos, N870 per litre in the South-West, N880 in the North, and N890 in the South-South and South-East.

According to Dangote Refinery, this pricing modification is intended to provide needed relief to Nigerians, particularly during the Ramadan season. The decision also contributes to President Bola Ahmed Tinubu’s economic recovery agenda by reducing the financial burden on Nigerian citizens.

The refinery stated that it has constantly reduced the price of fuel and other refined petroleum products for the benefit of Nigerians. This is the second drop in February 2025, following a decrease of N60 earlier in the month.

Furthermore, in December 2024, during the Yuletide season, the refinery decreased the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to lowering living costs and offering assistance to Nigerians during the holiday season.

The refinery further stated that Dangote petrol will be sold at various pricing in retail locations owned by its main partners. MRS Holdings stations would sell it at N860 per litre in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East. Meanwhile, at AP (Ardova Petroleum) and Heyden stations, the product would 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.

Market factors are driving price reductions – IPMAN.

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

According to Ukadike, price changes have bolstered the deregulation process, with prices increasingly driving consumer behaviour. He noted that the dollar exchange rate has fallen in recent weeks, as have global crude oil prices, both of which are important variables in petrol pricing.

He acknowledged that the strengthening of the naira had contributed to price reductions, but independent marketers are counting their losses. The unexpected N65 per litre price decrease has put many independent marketers under financial difficulty, as they had previously acquired considerable amounts of petrol at the previous higher price.

Some marketers had up to three million litres on hand, while others had fuel-laden trucks still in journey when the price cut was announced. Ukadike said that major marketers with significant financial support can swiftly change their pump pricing, however independent marketers struggle to sustain such losses due to their limited financial capacity.

On the N100 billion bridging debt, Ukadike indicated that the feared stoppage of operations by independent marketers has been postponed due to the Federal Government’s intervention. He expressed confidence that the matter would be handled within two weeks after consulting with the Minister of State for Petroleum (Oil).

PETROAN recommends price reduction.

The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) applauded the price cuts, stating that they will reduce transportation costs and alleviate financial constraints on Nigerians.

PETROAN President, Dr. Billy Gillis-Harry, praised NNPC Retail Ltd. for taking proactive steps to assist Nigerians. He called the price drop as a big comfort to many citizens who are struggling to make ends meet.

He also praised Dangote Refinery for creating a return mechanism to reimburse retail outlet owners impacted by the price cut. According to him, Dangote Refinery has commenced a refund of N65 per litre for retail outlets that previously purchased PMS at higher rates.

This reimbursement applies to nearly 200,000 metric tonnes of PMS purchased prior to the price cut, representing a N16 billion loss borne by Dangote. The PETROAN president stated that this decision demonstrates the refinery’s dedication to fair pricing and consumer welfare.

He also stated that the refund exercise will benefit retail outlet owners by helping to reduce losses for those who had stocked PMS at higher rates prior to the price change.