…as Dangote Refinery sparks price war
The Nigerian National Petroleum Company Limited (NNPCL) is reportedly considering a fresh reduction in the price of Premium Motor Spirit (PMS) following a fuel pump price cut announced by MRS filling stations in partnership with Dangote Refinery.
The National President of the Petroleum Products Retail Outlet Owners Association (PETROAN), Billy Gillis-Harry, and the Spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed this development in an interviews.
On Monday, MRS announced a reduction in fuel prices across various regions in Nigeria, marking the first price drop in 2025. According to the company’s official statement on its X account, the new pump prices are as follows:
Lagos: N925 per litre
South-West: N933 per litre
Northern Nigeria: N945 per litre
South-East: N955 per litre
This represents a significant reduction from the previous price of around N970 per litre.
The development comes weeks after Dangote Refinery announced an ex-depot price drop from N970 to N870 per litre on February 1, 2025.
Reacting to the situation, Gillis-Harry and Ukadike expressed optimism that NNPCL would soon follow suit with a price reduction to maintain its competitiveness in the downstream petroleum sector.
“NNPC has no choice but to reduce petrol retail prices because it is not possible to see a product at a cheaper price and still opt for NNPCL,” said Gillis-Harry.
Similarly, Ukadike emphasized that the ongoing price competition between Dangote Refinery and NNPCL makes a price cut inevitable for the national oil company.
READ ALSO: MRS reduces petrol price to N925/litre
“It is likely that NNPCL will drop its price because there is a price war with Dangote Refinery. Once Dangote Refinery announces a price drop, NNPC will follow suit,” he stated.
Despite the reduction in fuel prices, concerns persist over the lack of impact on transportation and food costs. Gillis-Harry noted that the purchasing power of Nigerians remains weak, which limits the effect of fuel price adjustments on the cost of living.
“If you watch, the cost of transportation has not reduced despite the reduction of fuel at the retail market. That tells you that the purchasing power of Nigerians is very weak,” he remarked.
However, Ukadike suggested that the effects of the price reduction will be felt gradually across transportation, goods, and services.
Gillis-Harry also raised concerns about the frequent adjustments in petrol prices by oil and gas sector players, warning that such instability could affect fuel security.
He explained that marketers suffer financial losses when prices drop suddenly, especially if they have already stocked fuel at higher prices.
“There was a lot of fuel that was purchased at the old price that is still in the system, and they have not been sold. Marketers cannot sell below the cost price. It is completely impossible for someone to buy a product at N970 per litre and sell below the purchase price,” he stated.
The ongoing rivalry between NNPCL and Dangote Refinery has played a crucial role in driving fuel prices down since late 2024. Last December, Dangote Refinery reduced its ex-depot price from N899.50 per litre to N970, prompting NNPCL to also announce a price reduction.
With the current trend, industry experts expect further price adjustments in the coming weeks as competition in the market intensifies.
