Nigeria’s petroleum market has entered its most dramatic phase in decades as Dangote Refinery’s pricing strategy triggers a historic fuel war between private marketers and the Nigerian National Petroleum Company Limited (NNPC). What began as a bold move by MRS Oil to sell Dangote-supplied petrol cheaper than NNPC has now forced the state-owned giant to announce sweeping pump price reductions across the country.
The shock came after Dangote Refinery slashed its ex-depot rate to N840 per litre on June 30, 2025, taking advantage of falling crude oil prices and reshaping competition in the downstream sector. MRS Oil was the first to bow, cutting its retail pump price below NNPC’s nationwide outlets, a move that unsettled both independent marketers and the federal behemoth. For days, motorists flocked to stations retailing Dangote’s cheaper fuel, leaving NNPC stations deserted.
By mid-August, the pressure became unbearable. On Thursday, August 14, 2025, NNPC finally slashed its petrol prices across major cities, bringing Lagos pump rates down to N865 from N895, while Abuja motorists paid N890 per litre, down from N925. Similar adjustments were recorded nationwide, with states like Osun and Kwara selling at N875, Oyo at N870, and Delta at N930. In some states, the new prices represented reductions of up to N60 per litre, a development NNPC had resisted until competition left it with no choice.
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The sudden about-face signals a power shift in Nigeria’s oil market, one long dominated by government-controlled pricing. For the first time, the dominance of NNPC is being openly challenged, not by importers but by a locally refined supply chain capable of forcing real-time adjustments in retail prices. Independent marketers, who initially resisted Dangote’s cuts, are now scrambling to align their pumps to avoid losing customers in droves.
Petrol attendants across Lagos and Abuja confirmed the sudden surge in patronage following NNPC’s price slash. “This morning we received instructions to reduce the pump price to N865. Our sales have picked up immediately because motorists were already turning to stations selling cheaper,” one attendant told The Trumpet.
Industry watchers say the unfolding petrol price war could determine the future of Nigeria’s downstream market. With Dangote Refinery disrupting the old order, consumers may finally begin to experience competitive pricing, though analysts warn that volatility in crude oil costs and regulatory uncertainties could still dictate the market’s next turn.
For now, Nigerians struggling under the weight of inflation are seizing every relief at the pump, while the rivalry between Dangote and NNPC intensifies. What is clear is that the downstream sector has entered uncharted waters, and the battle for dominance is only just beginning.
