Fuel Price War: NNPCL Slashes Petrol to N895 as Dangote, Marketers Stir Competition
In a bold response to increasing market competition, the Nigerian National Petroleum Company Limited (NNPCL) has announced a N15 reduction in the pump price of Premium Motor Spirit (PMS), bringing the new rate to N895 per litre, down from the previous N910.
The price slash comes just days after Dangote Refinery and its partners introduced new pricing, offering petrol at N875 and N895 per liter in major cities like Lagos and Abuja. With this move, NNPCL aims to maintain its market share as private sector competitors rapidly gain ground in Nigeria’s liberalized fuel sector.
Petrol prices across independent filling stations have also seen adjustments, now ranging between N900 and N910 per liter. Many Nigerians, already burdened by rising living costs, have welcomed the development. “It’s about time,” said Muhammad Ibrahim, a motorist in Abuja. “Other stations had already brought down their prices. We just hoped NNPCL would do the same.”
Liberalization driving market realignment
This new price war marks one of the clearest signs yet that the downstream oil and gas sector is undergoing a fundamental transformation. With deregulation in full effect, fuel pricing is now determined by market dynamics rather than government intervention.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that private marketers are now better positioned to compete with NNPCL, a shift many thought was impossible just a few years ago. However, he expressed concern over NNPCL’s continued dominance, particularly regarding its role in the delayed rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
“We must ensure that NNPCL does not become both referee and player in this new market,” Ukadike cautioned.
What it means for Nigerians
For everyday Nigerians, the price drop could signal the beginning of more competitive and consumer-friendly fuel pricing. Analysts believe that increased private sector participation will lead to improved distribution networks, service delivery, and ultimately, price stability.
Yet, the long-term impact of this shift will depend heavily on the performance of local refineries, especially the much-anticipated output from the Dangote Refinery, and how fairly the market is regulated.
As fuel retailers continue to adjust prices in response to market forces, motorists and households alike may finally start to feel some relief, proof that real competition may be the game-changer Nigeria’s energy sector desperately needs.
