Fuel marketers have expressed concern over mounting losses following the Nigerian National Petroleum Company Limited’s (NNPC) decision to reduce the pump price of Premium Motor Spirit (PMS) to N880 per litre in Lagos and N935 in Abuja.
The price cut, which took effect on Easter Monday, saw NNPC outlets in Lagos drop their prices from N925 to N880, while stations in Abuja adjusted from N950 to N935. This move comes just days after the Dangote Refinery reduced its ex-depot petrol price from N865 to N835 per litre, in what appears to be a fresh wave of competition in the downstream petroleum market.
In line with the new pricing, Dangote’s downstream partners—MRS, Heyden, and Ardova—were directed to peg retail pump prices at N890 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
Industry observers have noted that NNPC’s new rate is N10 cheaper than Dangote’s in Lagos, potentially setting the stage for a price war between the two petroleum giants.
Despite the reductions, some NNPC retail outlets are still selling at the old rates, as they have been allowed to dispense existing stock before implementing the new prices.
Confirming the price adjustment, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, acknowledged that while the move may benefit consumers, it comes at a cost to retailers.
The Dangote Refinery’s decision to cut prices followed a federal directive to continue the naira-for-crude arrangement indefinitely, an initiative that aims to stabilise fuel prices by reducing reliance on foreign exchange for crude procurement.
As competition heats up between local refiners and state-owned distributors, the evolving dynamics are expected to shape fuel pricing and supply in the weeks ahead, offering potential relief for consumers, but continued challenges for marketers navigating deregulated terrain.
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