Petrol Price Reduction in Nigeria to Continue Until June 2025, Says Bismarck Rewane

By DAYO ADESULU

The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has projected that the ongoing petrol price reduction in Nigeria will persist until June 2025. His statement comes as the Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery continue to slash fuel prices, sparking optimism among consumers.

Rewane shared his insights during an interview on Channels Television’s Business Morning on Tuesday, March 4, 2025, where he analyzed the economic factors influencing the current downward trend in petrol prices.

Petrol Price Drop to Continue Until Mid-2025

According to Rewane, the petrol price reduction is expected to persist over the next few months, driven by increasing market competition and changes in global oil dynamics.

“So, generally, between now and June, we will see petrol prices begin to decline. But after June, as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some price stabilization,” Rewane stated.

His forecast aligns with recent developments in Nigeria’s fuel market, where the competition between the state-run NNPCL and privately owned Dangote Refinery has intensified, leading to price cuts that favor consumers.

Petrol Price War Between NNPCL and Dangote Refinery: Who Wins?

Rewane emphasized that the ongoing price war between NNPCL and Dangote Refinery is largely beneficial to Nigerian consumers in the short term.

“In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” he explained.

The downward trend in petrol prices is attributed to multiple factors, including increased local refining capacity, improved supply chain efficiency, and shifts in global crude oil pricing.

Dangote Refinery Leads Fuel Price Reduction

Dangote Refinery has played a significant role in the petrol price drop, leveraging its production cost efficiencies to offer competitive prices. The refinery recently announced a price cut that positioned its fuel prices lower than NNPCL’s rates across various regions in Nigeria.

The price breakdown released by Dangote Refinery includes:

• Lagos (MRS Holdings stations) – ₦860 per liter
• South-West – ₦870 per liter
• North – ₦880 per liter
• South-South and South-East – ₦890 per liter

Similarly, other fuel distribution companies, including AP (Ardova Petroleum) and Heyden, have adjusted their prices accordingly:

• Lagos – ₦865 per liter
• South-West – ₦875 per liter
• North – ₦885 per liter
• South-South and South-East – ₦895 per liter

NNPCL Responds With Its Own Price Reduction

In response to Dangote Refinery’s move, NNPCL followed suit by reducing its pump price to ₦860 per liter across its stations in Lagos. The company’s move suggests an ongoing price competition that could further drive fuel costs down in the coming months.

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Industry experts believe that Dangote Refinery’s ability to refine crude oil locally gives it a cost advantage, allowing it to set competitive prices compared to NNPCL, which still relies on imports for a significant portion of its supply.

What This Means for Consumers

For Nigerian motorists and businesses, the continued reduction in petrol prices offers significant relief, especially amid broader economic challenges. Lower fuel costs could lead to reduced transportation expenses, lower inflation rates, and improved economic activity across sectors.

Market analysts, however, caution that after June 2025, the trajectory of fuel prices will depend on several factors, including:

• The stability of the global crude oil market
• Exchange rate fluctuations
• Government policies on fuel subsidies and taxation
• The long-term sustainability of local refining operations

Conclusion: A New Era in Nigeria’s Fuel Market?

The ongoing petrol price war between NNPCL and Dangote Refinery marks a significant shift in Nigeria’s energy landscape. While consumers stand to benefit from lower prices in the short term, industry players are watching closely to see how the market stabilizes beyond mid-2025.

For now, Nigerian motorists can enjoy the price drop while keeping an eye on future market trends.

Stay updated for more news on petrol price trends and economic developments in Nigeria.

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Dayo Adesulu, online editor, SEO expert.