In a bold move signaling the intensifying competition within Nigeria’s petrol sector, Nigeria National Petroleum Company Limited (NNPCL) has slashed its pump price to ₦860 per litre.
This price cut, confirmed through a recent market survey in Lagos, is set to ripple through the industry as other players, including independent marketers, respond.
This latest reduction from NNPC follows closely on the heels of a groundbreaking announcement by Dangote Refinery, which revealed it would absorb a ₦16 billion loss by refunding ₦65 per litre to customers purchasing petrol at higher rates from its network of partners, including AP (Ardova Plc), Heyden, and MRS across Nigeria.
This gesture is part of the refinery’s continued effort to make petrol more affordable to Nigerians, aligning with the government’s economic stimulus objectives under President Bola Tinubu’s Renewed Hope Agenda.
Earlier in the week, Dangote Refinery had reduced its gantry price from ₦890 to ₦825 per litre, a move that is already making waves in the fuel market.
The refinery reassured consumers that it was taking proactive steps to ensure no loss would be experienced by its business partners due to the price change, which became effective from February 27, 2025. The goal, the refinery stressed, is to immediately deliver a lower petrol price nationwide, benefiting Nigerians directly.
Meanwhile, NNPC quickly followed suit with its own price cut, lowering petrol prices to ₦860 per litre at its Lagos stations. This has sparked a price war between the state-owned oil company and independent marketers, further shaking up the already volatile market. While oil marketers have confirmed the price reduction, they also noted that NNPC has yet to send an official communication to them regarding the new rate.
With Dangote Refinery and the NNPCL’s Port Harcourt refinery being the only two petrol producers in the country, this price war is set to reshape the dynamics of Nigeria’s fuel market. Interestingly, NNPC has confirmed that it still purchases petrol from Dangote Refinery for its Lagos stations, as it has not imported any fuel in 2025 thus far.
The recent price cuts and competitive moves have already led to a noticeable shift in consumer behavior, with petrol queues at NNPC stations dissipating as many customers flock to private stations like MRS, citing the price advantage and claims that Dangote petrol offers superior efficiency, lasting longer in fuel tanks.
As the rivalry between NNPC and Dangote Refinery intensifies, Nigerians stand to benefit from the ongoing price adjustments, which are poised to bring more affordable and efficient fuel options to the market.
This dramatic shift not only reflects the sector’s growing competitiveness but also points to the potential for wider economic impacts as energy costs and fuel access continue to evolve in Nigeria’s dynamic market landscape.
