The Nigerian National Petroleum Company Limited has reduced the pump prices of Premium Motor Spirit (petrol) sold at its stations to match that of the Dangote Petroleum Refinery.
Our correspondents confirmed that some retail outlets owned by the NNPC adjusted their petrol pump price to N860 per litre on Monday, the same rate Dangote sells petrol at MRS filling stations in Lagos.
Although there is no official communication from the NNPC Retail yet, the company’s stations in Lagos adjusted their pumps to N860 per litre, down from N945 as of Sunday. This comes a few days after the Dangote refinery reduced its ex-depot petrol price from N890 to N825 per litre.
NNPC spokesperson Olufemi Soneye did not answer calls or reply to messages sent to his phone.
However, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, confirmed the development to our correspondent.
“It is true, NNPC is selling petrol at N860 in the filling stations. Though this has not been reflected on the portal, they told me they are working on updating the portal. I spoke with them,” the IPMAN leader said.
Also, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said, “They reduced the pump price earlier this (Monday) morning, but I’m yet to get the details.”
Recall that the Dangote refinery announced another price cut last Wednesday, setting another price regime for the petrol market in Nigeria.
Since December 2024, the Dangote refinery has been ahead of other key players in the downstream sector, changing prices whenever it feels there is a need for that.
t has been observed that the NNPC reacts to market pressure by lowering its price anytime Dangote calls the shots.
Lately, it was observed that the queues usually seen at NNPC stations have vanished to other private filling stations like MRS. This was due to the price differential and the claim that the Dangote petrol lasts longer in fuel tanks than others.
Before the Dangote refinery came on stream, the NNPC was the used to dictate the price of PMS under a regulated petroleum sector
However, a report by Energy Intelligence said the 650,000 barrel per day Dangote refinery has been transformational both for Nigeria’s downstream sector and for the Atlantic Basin oil products market.
It was said that the refinery “has broken state-owned NNPC’s tight monopoly on refining and products marketing in Nigeria and has structurally shifted Atlantic Basin gasoline balances, pressuring European margins.”
At the moment, the Dangote refinery and the NNPC’s Port Harcourt refinery are the only petrol producers in Nigeria. However, the NNPC recently said it still buys petrol from the Dangote refinery for its Lagos stations. The NNPC said it has not imported any fuel this year, but it will import when there is a need to do so.
Speaking with our correspondent, the IPMAN Vice President described the price war between Dangote and NNPC as a good development. However, he warned that this should not be a tactic to eliminate competitors.
He prayed that the players sustain the healthy rivalry and lessen the hardship in Nigeria.
“It’s a good development. I just hope that they can sustain it. I pray it will not be a way of eliminating competitors. So, I pray that we sustain it. If we can sustain it, it’s good for everybody. It will be good for the public and everyone will be happy to have PMS at a reduced rate, because the hardship is too much,” Fashola stated.
After reducing its ex-depot price to N825, the Dangote refinery on Monday asked those who bought PMS above the new rate for a refund of N65 per litre.
Responding to this, Fashola said it has to do with some of the complaints that some marketers were affected by the sudden price reductions.