NNPCL Maintains Petrol Price Amid Speculations of Reduction
The Nigerian National Petroleum Company Limited (NNPCL) has maintained the pump price of Premium Motor Spirit (PMS), commonly known as petrol, at its retail outlets in the Federal Capital Territory (FCT), Abuja. As of Thursday, checks by DAILY POST revealed that petrol is still being sold at N965 per litre, the same price recorded in previous weeks.
WATCH OUR LATEST VIDEO FOR MORE INSIGHT
This development comes amid widespread speculation that NNPCL had reduced its petrol pump price to N940 per litre at its Lagos retail outlets, down from N960. However, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigadi, stated that he was unaware of any such price reduction by NNPCL.
The speculation follows a recent price adjustment by MRS Oil Nigeria Plc, in partnership with Dangote Refinery, which announced a reduction in petrol prices to N945 per litre from N970. Earlier in February 2025, Dangote Refinery had also slashed its ex-depot (gantry) petrol price to N890 per litre from N950, intensifying competition in the downstream petroleum sector.
Industry experts suggest that NNPCL is under pressure to lower its prices in response to the aggressive pricing strategy of Dangote Refinery, which has been gaining market share since it began domestic petrol supply. The National President of the Petroleum Products Retail Outlet Owners Association (PETROAN), Billy Gillis-Harry, and IPMAN spokesperson, Chinedu Ukadike, hinted that NNPCL is currently engaged in a price war with Dangote Refinery, a situation that could lead to further price adjustments in the coming weeks.
A Critical Perspective
While the price stability at NNPCL outlets in Abuja may provide temporary relief to consumers, the broader implications of the ongoing price war between NNPCL and Dangote Refinery raise critical questions about the sustainability of Nigeria’s downstream petroleum sector.
Dangote Refinery’s entry into the market has been a game-changer, offering lower prices and challenging NNPCL’s dominance. However, this competition, while beneficial to consumers in the short term, could have long-term consequences for smaller independent marketers who may struggle to compete with the pricing power of these industry giants.
Moreover, the lack of transparency in NNPCL’s pricing mechanism continues to be a concern. Despite the speculation of price reductions in Lagos, the company has not issued an official statement, leaving consumers and marketers in the dark. This opacity undermines public trust and highlights the need for a more transparent and predictable pricing framework.
The Nigerian government must also address the structural issues plaguing the petroleum sector, including inadequate refining capacity, reliance on imports, and inefficiencies in distribution. While Dangote Refinery’s operations have reduced dependency on imported petrol, the country still faces challenges in achieving full self-sufficiency.
In conclusion, while the current price stability is a positive development, it is imperative for stakeholders to focus on long-term solutions that ensure a competitive, transparent, and sustainable petroleum sector. The ongoing price war may benefit consumers temporarily, but without addressing the underlying issues, Nigeria’s downstream sector risks remaining in a state of flux, with potential repercussions for the broader economy.
Reference
NNPCL Maintains Petrol Price Amid Speculations of Reduction