The Nigerian National Petroleum Company Limited (NNPC) has recently modified the petrol pump prices at its stations to match the rates established by the Dangote Petroleum Refinery. Reports from various correspondents indicate that some NNPC-owned retail outlets in Lagos have slashed their petrol price to N860 per litre, aligning with the selling price of Dangote petrol at MRS filling stations in the vicinity.
While NNPC Retail has not made an official statement regarding this change, it has been observed that the price was reduced from N945 as of Sunday. This change follows a decision from the Dangote refinery to cut its ex-depot petrol price from N890 to N825 per litre just a few days earlier.
See also: Dangote Refinery Slashes Petrol Price Again – Nigerians to Pay Less
NNPC spokesperson Olufemi Soneye did not reply to questions concerning this situation. Nevertheless, Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that NNPC is indeed retailing petrol at N860 per litre at its stations. He stated that while this adjustment has yet to be reflected on the official website, NNPC is working on it.
Furthermore, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, noted that the lowered pump price was put into effect earlier on Monday morning, although he is still waiting for additional information.
The Dangote refinery previously declared a price reduction on Wednesday, creating a new pricing framework for the petrol sector in Nigeria. Since commencing operations in December 2024, the Dangote refinery has regularly influenced pricing trends in the downstream industry, adjusting rates based on market conditions.
It has been observed that NNPC typically reduces its prices in response to Dangote’s pricing strategies. In addition, the usual long queues at NNPC stations have lessened as customers increasingly prefer private filling stations, such as MRS, because of competitive prices and the belief that Dangote petrol lasts longer in fuel tanks.
Prior to the establishment of the Dangote refinery, NNPC played a crucial role in setting petrol prices within a regulated market. A report from Energy Intelligence underscores the significant impact of the 650,000-barrel-per-day Dangote refinery, which has disrupted NNPC’s monopoly in the refining and marketing of petroleum products in Nigeria, heavily influencing the Atlantic Basin oil products market.
