The Nigerian National Petroleum Company Limited (NNPC) has reduced the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to N825 per litre, down from N890 per litre, as competition in the country’s downstream oil sector continues to grow.
NNPC’s spokesperson, Olufemi Soneye, confirmed the adjustment, explaining that the company has been consistently responding to market dynamics since deregulation. He emphasized that as an energy company, NNPC does not issue public announcements for routine price adjustments, as such changes are part of a market-driven system.
Soneye noted that price fluctuations occur regularly based on market forces, ensuring energy security while allowing for a competitive environment where more investors can participate freely.
Dangote Refinery’s Price Adjustment
The NNPC price cut follows a similar move by Dangote Refinery, which on March 1, 2025, reduced its ex-depot price by N65 per litre, leading to adjustments by its retail partners.
As a result, Dangote petrol is now selling at:
N860 per litre in Lagos
N870 per litre in the South-West
N880 per litre in the North
N890 per litre in the South-South and South-East
According to Dangote Refinery, the price reduction is aimed at providing relief to Nigerians, particularly in celebration of the Ramadan season. The move also aligns with President Bola Ahmed Tinubu’s economic recovery policy, easing the financial burden on citizens.
This is the second price reduction by Dangote Refinery in February 2025, following an earlier N60 per litre cut. Similarly, in December 2024, the refinery reduced PMS prices by N70.50, lowering the cost from N970 to N899.50 per litre during the Yuletide season to provide relief for Nigerians.
Market Reactions to the Price Cuts
Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chief Chinedu Ukadike, attributed the price reduction to the strengthening of the naira and a drop in crude oil prices globally.
He explained that:
The dollar exchange rate has dropped, making fuel imports cheaper.
Crude oil prices have fallen, impacting petrol pricing.
These changes have strengthened deregulation, allowing market forces to determine fuel prices.
However, independent marketers are facing losses due to the abrupt N65 per litre price cut, as many had already purchased large fuel stocks at the previous higher price. Some had up to three million litres in storage, while others had trucks in transit when the reduction was announced.
Ukadike also noted that major marketers can quickly adjust their pump prices, but independent marketers struggle to absorb losses due to weaker financial capacity.
On the N100 billion bridging debt, he revealed that the threatened shutdown by independent marketers has been suspended after government intervention, with hopes of resolving the issue within two weeks.
PETROAN Commends NNPC and Dangote Refinery
The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has welcomed the price cuts, stating that they will reduce transportation costs and provide financial relief to Nigerians.
PETROAN President, Dr. Billy Gillis-Harry, praised NNPC Retail Ltd. for taking proactive measures to support Nigerians. He also commended Dangote Refinery for introducing a refund policy, compensating retail outlets that had stocked fuel at higher rates before the price reduction.
According to PETROAN, Dangote Refinery has initiated a refund of N65 per litre for over 200,000 metric tonnes of PMS purchased before the price adjustment. This refund, amounting to N16 billion, is a direct loss absorbed by Dangote, demonstrating its commitment to fair pricing and consumer welfare.
The refund initiative is expected to help retail outlet owners mitigate their losses and ensure fair pricing in the market.
