NNPCL Petrol Price Reduction: NNPC Stations Lower Pump Price to N860/Litre

By DAYO ADESULU

ABUJA – The Nigerian National Petroleum Company Limited (NNPCL) has implemented a petrol price reduction, lowering the pump price of Premium Motor Spirit (PMS) at its stations to N860 per litre.

The latest NNPCL petrol price reduction aligns with the recent price cut announced by the Dangote Petroleum Refinery, marking a significant shift in Nigeria’s fuel pricing landscape. This move is expected to impact the broader petroleum market, including independent marketers.

NNPCL Petrol Price Reduction Confirmed by Marketers

Our correspondents confirmed that on Monday, March 4, 2025, several NNPC retail outlets in Lagos adjusted their fuel pump price from N945 per litre to N860 per litre. This adjustment mirrors the rate at which Dangote Petroleum Refinery sells petrol to MRS filling stations in Lagos.

Although the NNPC Retail unit has not issued an official statement on the price reduction, multiple industry sources verified the adjustment.

Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the development. He stated:

“It is true, NNPC is selling petrol at N860 per litre in its filling stations. Although the change has not yet reflected on the online pricing portal, I have confirmed that they are working on updating it.”

Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged the adjustment:

“They reduced the pump price earlier this morning, but I’m still gathering the full details.”

Dangote Refinery’s Influence on NNPCL Petrol Price Reduction

The NNPCL petrol price reduction follows Dangote Refinery’s latest price cut, announced last Wednesday. Dangote reduced its ex-depot price from N890 to N825 per litre, effectively lowering the retail pump price at affiliated stations.

• Dangote Refinery
• https://www.thecheernews.com/efcc-arrests-ex-governor-udom-emmanuel-over-alleged-n700-billion-fraud/

Since its inception, the Dangote Refinery has been a key player in Nigeria’s downstream oil sector, frequently adjusting petrol prices to reflect market trends. Industry experts note that the NNPCL’s response to these price shifts indicates a new era of competition in Nigeria’s fuel industry.

Market Impact: Vanishing Queues at NNPC Stations

A noticeable trend in Lagos has been the disappearance of fuel queues at NNPC stations. With the price difference narrowing, many consumers have shifted to other private stations like MRS, where Dangote-refined petrol is available. Some motorists have claimed that the Dangote fuel lasts longer, influencing their purchasing decisions.

Before the Dangote Refinery began operations, the NNPC largely controlled fuel prices in Nigeria’s regulated petroleum sector. However, industry reports now suggest that Dangote’s influence has significantly altered Nigeria’s fuel pricing structure.

According to a report by Energy Intelligence:

“The 650,000-barrel-per-day Dangote Refinery has transformed Nigeria’s downstream sector. It has broken NNPC’s monopoly on refining and product marketing, shifting Atlantic Basin gasoline balances and impacting European refineries.”

Petrol Price Variations Across Nigeria

While the NNPC petrol price reduction has been observed in Lagos, the situation varies across other states. In Abuja, for example, NNPC stations dropped their price from N965 per litre to N880 per litre. At the NNPC retail outlet in Federal Housing, Kubwa, the price dropped by N85 per litre on Monday afternoon.

Independent marketers, however, have been slower to implement price reductions. A market survey conducted across various fuel stations in Abuja revealed the following prices:

• A.A Rano (Airport Road): N945 per litre (previously N970)
• Shema (Opposite Dunamis Church): N960 per litre
• Bovas (Airport Road): N970 per litre
• Mobil (Jabi): N960 per litre
• Conoil (Jabi): N950 per litre

Concerns Over Competitive Pricing Strategies

Despite the positive reception of the NNPCL petrol price reduction, industry stakeholders have expressed concerns over potential market monopolization.

IPMAN Vice President Hammed Fashola cautioned:

“While competition is good for consumers, we must ensure that it doesn’t become a tactic to eliminate other players. The fuel market needs to remain diverse to prevent future price manipulation.”

The Dangote Refinery recently announced a price refund policy for marketers who purchased petrol above the new rate. According to reports, marketers who bought PMS at previous higher rates are eligible for a refund of N65 per litre.

Fashola acknowledged this measure but noted its limitations:

“This refund will help mitigate losses for some marketers, but it may not cover all cases. Those who purchased fuel days before the reduction might not benefit. However, for those who paid but haven’t lifted their stock, this is a welcome development.”

Conclusion: What’s Next for Nigeria’s Fuel Market?

With the NNPCL petrol price reduction taking effect, competition in Nigeria’s fuel sector is intensifying. The price adjustments by both NNPC and Dangote Refinery signal a shift toward market-driven pricing, potentially benefiting consumers in the long run.

Industry experts anticipate further price fluctuations in the coming months, depending on global crude oil trends, refining capacity, and exchange rate stability.

As Nigerians monitor these developments, one key question remains: will the petrol price reduction be sustained, or is this just a temporary shift?

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Dayo Adesulu, online editor, SEO expert.