NNPCL Cuts Petrol Price to ₦835 Per Litre as Dangote Refinery Sparks Market Competition

NNPCL Cuts Petrol Price to ₦835 Per Litre as Dangote Refinery Sparks Market Competition

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of Premium Motor Spirit (PMS), popularly known as petrol, to about ₦835 per litre across major cities in Nigeria, marking a significant drop from the previous ₦915 per litre.

Checks at NNPCL retail outlets in Lagos showed petrol selling between ₦838 and ₦840 per litre in areas such as Igando, Lekki and Iwaya, while outlets in Abuja are dispensing fuel at ₦835 per litre.

Industry sources say the price reduction is linked to heightened competition in Nigeria’s downstream petroleum sector, driven largely by aggressive pricing from the Dangote Petroleum Refinery, which has consistently lowered fuel prices to expand its market share.

A petroleum sector insider disclosed that the latest adjustment by NNPCL was “a direct response to the competitive pricing strategies adopted by Dangote Refinery and other private marketers.”

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Analysts attribute the development to structural changes in the downstream oil market, including increased domestic refining capacity, reduced reliance on fuel imports, and declining ex-depot prices.

Meanwhile, independent marketers such as MRS, BOVAS and AA Rano have also adjusted their pump prices in Abuja, with petrol now selling between ₦739 and ₦865 per litre. Similarly, private depots, including Dangote, have reportedly cut ex-depot prices to between ₦699 and ₦800 per litre.

Industry observers described the price reduction as a welcome relief for consumers, especially as fuel demand typically rises during the festive season due to increased travel.

The development highlights a growing shift toward market-driven pricing in Nigeria’s fuel sector, gradually easing the country’s long-standing dependence on imported petroleum products.

However, experts cautioned that petrol prices in Nigeria remain highly sensitive to global crude oil prices, exchange rate fluctuations, and local refinery output, warning that further price changes—upward or downward—remain possible.

The ongoing price war triggered by Dangote Refinery’s aggressive pricing strategy continues to reshape the industry, with stakeholders calling for greater transparency, open market access, and sustained reforms to keep fuel prices under pressure.

On December 12, 2025, the Dangote Petroleum Refinery announced a further reduction in its ex-depot price of PMS, slashing the gantry rate from ₦828 to ₦699 per litre—its 20th petrol price adjustment in 2025 alone.

NNPCL Cuts Petrol Price to ₦835 Per Litre as Dangote Refinery Sparks Market Competition