The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump prices of Premium Motor Spirit otherwise known as petrol sold at its outlets across the country as the competition in the downstream sector of the oil industry intensifies.
The change in price comes a few days after Dangote refinery announced the reduction of the ex-depot price of petrol for its partners across the country.
Nairametrics confirmed that some NNPC retail outlets have adjusted the pump price of petrol to its new price of N860 per litre as against the previous price of N945 per litre.
NNPC’s reaction to Dangote’s price cut
Some analysts and stakeholders have attributed the sudden reduction of pump price of petrol by the NNPC to the market pressure caused by a similar exercise by Dangote refinery, which reduced the gantry price of its petrol from N890 per litre to N825 per litre.
- Recently, there were reports that queues which were usually seen at NNPC retail stations due to the availability of cheaper fuel, have now moved to MRS filling stations which sell products from Dangote refinery. This was due to the substantial difference in prices and an earlier claim that the Dangote petrol lasts longer than the one from NNPC.
- NNPC had recently revealed that it still buys petrol from the Dangote refinery for its Lagos stations, as it is yet to import any fuel this year.
- Dangote Refinery had a few days ago announced a reduction in the ex-depot price of petrol, from N890 to N825 per litre, effective February 27, 2025.
This is the second price cut in February as the refinery announced a gantry price reduction of N60 on February 1.
Dangote refinery described the latest N65 price cut as a strategic move aimed at providing economic relief to Nigerians ahead of the Ramadan season.
Marketers commend NNPC, Dangote
Meanwhile, the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) said the recent petrol price reduction by the Dangote refinery as well as Monday’s cut by NNPC filling stations will help tame inflation.
- The National President of PETROAN, Dr Billy Gillis-Harry, commended the NNPC for reducing its price from N920 to N875 per litre. However, in Lagos, it was learnt that the national oil company cut its price at its filling stations to N860 per litre.
- But describing the price cuts as a bold move, PETROAN said the move is expected to alleviate the financial burden on Nigerians amid rising inflation and praised NNPC for taking proactive steps to support the Nigerian people.
- He said the reduction in petrol price is expected to positively impact Nigerians in terms of decreased transportation costs, making it easier for people to commute and transport goods.
Also, the PETROAN boss applauded Dangote refinery for agreeing to refund N65 to retail outlet owners affected by the price reduction.
He said, “This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.
“The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members,” said Gillis-Harry, urging Nigerians to be optimistic as government reforms are already yielding results.’’
Influence of market forces
Although there is still no official response from the NNPC, the Group Chief Corporate Communications Officer of the state-owned oil firm, Olufemi Soneye, noted that these adjustments occur regularly, reflecting the influence of market forces.
- He said that the NNPC have consistently adjusted prices since the deregulation of the downstream sector in response to market dynamics.
Soneye said, ‘’Since deregulation, we have consistently adjusted prices in various areas in response to market dynamics. As an energy company, it is not our practice to issue press releases or make public announcements for routine price adjustments at the pump, as such changes are a fundamental aspect of a market-driven system.
‘’These adjustments occur regularly, reflecting the influence of market forces. This is precisely the strength of NNPC Ltd’s approach that ensures and guarantees energy security for our nation while fostering an open, competitive environment where every Nigerian interested in the sector can participate freely and in line with established regulations.’’
What you should know
Dangote refinery had over the weekend announced that it will make a N65 per litre refund to marketers who purchased petrol, at rates higher than the earlier announced prices, so Nigerians will benefit from cheaper fuel.
- Dangote refinery in its statement said that the refund will be for any of its key partners – AP (Ardova Plc), Heyden, or MRS – throughout Nigeria.
- This move follows the refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre.
- The refinery stated that this is part of its ongoing efforts to ensure that Nigerians are the primary beneficiaries of the price reduction and in line with President Bola Tinubu’s Renewed Hope Agenda, which aims to stimulate the economy.
- The refinery confirmed it will refund N65 per litre on the over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price of N890 per litre, before the new rate of N825 per litre.
Dangote refinery noted that with the new gantry price of N825 per litre, it expects that no Nigerian will pay more than N900 per litre for PMS, regardless of location or petrol station.
