The Nigerian National Petroleum Company Limited has reduced the pump price of Premium Motor Spirit, popularly known as petrol, to about ₦835 per litre across major cities, in what industry players describe as a response to intensifying competition in the downstream oil sector.
Checks on Friday showed that NNPCL retail outlets in Abuja adjusted their prices to ₦835 per litre, down from about ₦915. In Lagos, stations operated by the national oil company in areas such as Igando, Lekki and Iwaya were selling petrol between ₦838 and ₦840 per litre.
The latest reduction is coming amid aggressive pricing moves by private operators, led by the Dangote Petroleum Refinery, which has repeatedly slashed its ex-depot prices in recent weeks to expand market share.
A senior industry source told our correspondent that the NNPCL’s action was largely driven by competitive pressure. “This price adjustment by NNPCL is a direct response to the pricing strategy of Dangote and other private marketers. The market is becoming more competitive, and no player wants to be priced out,” the source said.
Industry analysts said the development reflects ongoing changes in Nigeria’s downstream petroleum market, spurred by increased domestic refining capacity and declining ex-depot prices.
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Independent marketers, including MRS, BOVAS and AA Rano, have also reviewed their pump prices in Abuja, with petrol now selling for between ₦739 and ₦865 per litre, depending on location and brand. Similarly, private depots, including those linked to the Dangote Refinery, have reportedly reduced ex-depot prices to a range of ₦699 to ₦800 per litre.
Many consumers have welcomed the price cuts, describing them as a modest relief, especially as travel demand surges during the festive season.
“This reduction may not solve all our problems, but at least it eases transportation costs a bit during Christmas and New Year,” a commercial driver in Abuja, Musa Abdullahi, said.
Observers note that the ongoing price adjustments signal a gradual shift towards market-driven pricing in Nigeria’s fuel sector, reducing the country’s long-standing dependence on imported petrol.
However, experts warned that petrol prices remain vulnerable to several factors, including fluctuations in global crude oil prices, foreign exchange rates and the stability of local refinery output.
“While prices are coming down now, they are still highly sensitive. Any shock in crude prices, forex or domestic supply could trigger another round of increases,” an energy analyst said.
The price war intensified earlier this month after the Dangote Petroleum Refinery announced another reduction in its ex-depot price of petrol. On December 12, the refinery cut its gantry price from ₦828 to ₦699 per litre, marking its 20th petrol price adjustment in 2025.
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