NNPCL Follows Dangote’s Lead, Cuts Petrol Prices Amid Intensified Competition

A recent market survey conducted by Channels Television on Tuesday revealed that the Nigerian National Petroleum Company Limited (NNPCL) has joined Dangote Refinery in reducing petrol prices, signaling a deepening rivalry between the two major players in the fuel market.

The NNPCL’s price reduction comes just days after Dangote Refinery announced it would absorb a significant N16 billion loss by refunding N65 per liter to marketers. This move is aimed at ensuring Nigerians enjoy lower fuel prices. In a statement released over the weekend, Dangote Refinery committed to reimbursing customers who purchased Premium Motor Spirit (PMS) at rates higher than its advertised prices from key partners such as Ardova Plc (AP), Heyden, and MRS across Nigeria.

This decision follows Dangote Refinery’s recent adjustment of its gantry price, lowering it from N890 to N825 per liter. The refinery emphasized that this initiative is part of its broader strategy to ensure Nigerians benefit directly from the price cuts, aligning with President Bola Tinubu’s Renewed Hope Agenda, which seeks to boost economic growth and improve living standards. “Effective February 27, 2025, this measure ensures that none of our valued business partners incur losses due to the price adjustment. More importantly, it guarantees that the new, lower rates take immediate effect nationwide for the benefit of the Nigerian people,” the statement read.

In a quick response, the NNPCL reduced its pump price to ₦860 per liter at its Lagos stations on Monday, further fueling the ongoing price competition between the state-owned oil company and independent marketers. Oil marketers who spoke anonymously to Channels Television confirmed the price change but noted that the NNPCL had not yet issued an official memo regarding the new pricing structure.

Currently, Dangote Refinery and the NNPCL’s Port Harcourt Refinery are the sole producers of petrol in Nigeria. Interestingly, the NNPCL revealed that it still purchases petrol from Dangote Refinery for its Lagos stations, as it has not imported any fuel this year.

Last Wednesday, Dangote Refinery announced another price reduction, introducing a new pricing structure for the Nigerian petrol market. This has led to noticeable shifts in consumer behavior, with long queues previously seen at NNPCL stations now disappearing as motorists flock to private filling stations like MRS. This trend is attributed to the price difference and claims that Dangote’s petrol lasts longer in fuel tanks compared to other brands.

As the competition intensifies, consumers are benefiting from lower fuel prices. However, the NNPCL’s spokesperson, Olufemi Soneye, has yet to respond to official inquiries regarding the latest developments. The ongoing price war between Dangote Refinery and NNPCL is expected to continue shaping the dynamics of Nigeria’s fuel market in the coming months.

Source News
Channelstv

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