NNPCL Slashes Petrol Price Amidst Fierce Market Competition With Dangote
The ongoing battle for market dominance between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has intensified, as the latter has slashed the pump price of Premium Motor Spirit (PMS) to ₦860 per litre.
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A market survey conducted by Channels Television on Tuesday confirmed the price adjustment by NNPCL, which comes just days after Dangote Refinery took an unprecedented step to absorb a massive ₦16 billion loss by offering a refund of ₦65 per litre to marketers. This move, aimed at making fuel more affordable for Nigerians, has further escalated the competition in the downstream petroleum sector.
Dangote’s Strategic Price Reduction
In a statement issued over the weekend, Dangote Refinery reaffirmed its commitment to ensuring Nigerians benefit from lower fuel costs. It announced that customers who purchased petrol at rates exceeding its advertised price from key partners—AP (Ardova Plc), Heyden, or MRS—would receive a refund. This initiative follows Dangote’s decision to reduce its gantry price from ₦890 per litre to ₦825 per litre.
“The step, effective February 27, 2025, guarantees that none of our valued business partners will experience a loss due to the price change. More importantly, it ensures that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people,” the refinery stated. The initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which seeks to stimulate economic growth and improve living standards through fuel price stability.
NNPCL’s Countermove
Responding swiftly to Dangote’s price adjustment, NNPCL lowered its pump price to ₦860 per litre at its filling stations in Lagos on Monday. This decision marks a significant development in the competitive landscape of Nigeria’s petroleum industry, as state-backed NNPCL aims to retain its customer base in the wake of Dangote’s aggressive pricing strategy.
Oil marketers who spoke with Channels Television on condition of anonymity confirmed the price cut but noted that NNPCL had yet to issue an official circular regarding the change. This lack of formal communication has left many independent marketers uncertain about how to respond to the evolving market dynamics.
Market Shifts and Consumer Preferences
The increasing price competition has led to noticeable shifts in consumer behavior. Many motorists have begun favoring private filling stations such as MRS over NNPCL outlets, citing claims that Dangote’s petrol offers superior efficiency and lasts longer in fuel tanks. Additionally, the queues that previously characterized NNPCL stations have now shifted to other independent marketers, further underscoring the impact of the pricing war on consumer preferences.
NNPCL’s Supply Dependence on Dangote
Despite the competition, NNPCL has acknowledged that it still sources petrol from Dangote Refinery for its Lagos stations, as it has yet to import fuel this year. This dependency highlights the current supply dynamics within the industry and raises questions about the long-term sustainability of NNPCL’s competitive pricing strategy.
Awaiting Official Response
As of press time, NNPCL’s spokesperson, Olufemi Soneye, had yet to respond to inquiries regarding the latest price reduction and the broader implications of the ongoing fuel price war. Meanwhile, industry experts predict that the competition between these two major players could lead to further price adjustments, ultimately benefiting consumers while reshaping Nigeria’s petroleum market.
With Dangote and NNPCL locked in a high-stakes battle for market control, the coming weeks will be crucial in determining how this rivalry influences fuel pricing, supply dynamics, and consumer choices across Nigeria.
Reference
NNPCL Slashes Petrol Price Amidst Fierce Market Competition With Dangote