NNPC, marketers cut petrol prices after Dangote slashes ex-depot cost

The Nigerian National Petroleum Company Limited (NNPC) and other major marketers have reduced the pump price of Premium Motor Spirit (PMS), commonly called petrol, following Dangote Petroleum Refinery’s decision to cut its ex-depot prices.

From highs of about ₦950 per litre earlier in the week, petrol is now selling for as low as ₦865 per litre in some parts of the country, depending on the location. Checks on Friday revealed that nearly all filling stations in Lagos and Ogun States had dropped prices below ₦900 to stay competitive.

NNPC retail outlets reduced their pump price to ₦865 in Lagos and ₦870 in Ogun, down from ₦900. Dangote’s key marketing partners, MRS and Ardova, also cut prices to ₦865 and ₦875 per litre in the two states. Other stations adjusted as follows: Heyden sold at ₦890, Fatgbems at ₦882, Akiavic at ₦894, Asharami at ₦895, Rainoil at ₦875, and NIPCO at ₦890.

Price differences remain across regions, with the North, South-East, and South-South recording higher pump rates due to transportation costs and distance from supply points.

The downward trend follows Dangote Refinery’s ex-depot price reduction from ₦850 to ₦820 per litre earlier in the week. The Punch had predicted that pump prices would fall below ₦900 once marketers adjusted to the new benchmark.

In a statement, Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, confirmed the price cut, noting that the company was committed to national development and ensuring a steady and uninterrupted supply of petroleum products.

Just last week, filling stations across Lagos and Ogun sold petrol for ₦900 and above, even as global crude prices dropped from nearly $69 to $66 per barrel. Despite the dip, retail outlets including NNPC, Ardova, and Heyden had increased pump prices beyond ₦900, with motorists along the Lagos–Ibadan Expressway seeing no relief.

However, Dangote’s price move forced other marketers, including the NNPC, to adjust downward. This marks a significant shift in Nigeria’s downstream oil market. For years, the NNPC, as the sole importer of petrol under the subsidy regime, solely dictated pump prices. But with the 650,000-barrel-per-day Dangote refinery now operational and serving as the country’s only functional petrol-producing refinery, market pricing dynamics appear to have shifted in its favour.

Petrol prices had peaked at about ₦1,200 per litre last year when subsidies were fully removed, but successive cuts from Dangote Refinery have brought them down to current levels. While many Nigerians have welcomed the relief, independent marketers have voiced concerns about mounting losses.

Meanwhile, some Nigerians argue that prices remain too high and must fall much further for citizens to truly feel the impact.

“The prices should drop to between ₦200 and ₦500, and you’ll see the impact on virtually all sectors of the economy. Selling above ₦850 per litre is still high and causing inflation to spike,” said Lagos resident Favour Samson.