The Nigerian National Petroleum Company Limited (NNPC) has lowered the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N890 to N825 per litre. This decision comes as competition in Nigeria’s downstream oil sector continues to grow.
NNPC’s spokesperson, Olufemi Soneye, confirmed the price adjustment in an interview, stating that the company regularly reviews prices in response to market conditions. He noted that as an energy company operating in a deregulated market, NNPC does not issue public statements for routine price changes. Instead, prices fluctuate based on economic factors, ensuring stability in the supply chain.
The price reduction follows a similar move by Dangote Refinery, which lowered its ex-depot price by N65 per litre on March 1, 2025. This led to retail price adjustments across various regions, with petrol now selling for N860 per litre in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East.
Dangote Refinery stated that the price cut was aimed at providing relief to Nigerians, particularly during the Ramadan season. The company also noted that it aligns with President Bola Ahmed Tinubu’s economic recovery strategy, which seeks to ease the financial burden on citizens.
This marks Dangote’s second petrol price reduction in February 2025, following an earlier N60 cut. In December 2024, during the festive season, the refinery had also reduced prices by N70.50 per litre to support Nigerians with lower fuel costs.
Meanwhile, Chief Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), linked the price drop to a stronger naira and declining crude oil prices. He noted that these factors have made it possible to adjust fuel prices downward. However, he also pointed out that independent marketers are facing financial losses, as many had purchased large fuel stocks at the previous higher rates. Some marketers had millions of litres in storage or fuel-laden trucks still in transit when the new prices took effect.
While major marketers can quickly adapt due to their financial strength, smaller independent marketers are struggling to absorb the losses. Ukadike also noted that the Federal Government has stepped in to address the N100 billion bridging debt owed to independent marketers, with discussions ongoing to resolve the issue within two weeks.
The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) welcomed the price reduction, saying it would lower transportation costs and provide relief to Nigerians. PETROAN President, Dr. Billy Gillis-Harry, praised NNPC Retail Ltd. and Dangote Refinery for taking steps to ease financial strain on consumers.
He also noted that Dangote Refinery has introduced a refund policy for retail outlets affected by the price cut. The company will refund N65 per litre for over 200,000 metric tonnes of PMS purchased before the price adjustment, absorbing a N16 billion loss to support retailers.
