The Nigerian National Petroleum Company Limited (NNPC) has reduced the pump price of petrol to N965 per litre in Abuja and N925 per litre in Lagos, marking a second price reduction within two weeks.
The reduction follows price adjustments by the Dangote Refinery to N899 and signals increasing competition in Nigeria’s deregulated petroleum market.
President Bola Tinubu, upon assuming office on May 29, 2023, removed the widely supported but expensive fuel subsidy, paving the way for market forces to dictate petrol prices.
Consequently, petrol prices initially surged. However, recent trends show a decline as the Dangote Refinery and NNPC compete for a share of the downstream market through price adjustments.
In Abuja, the new pump price was observed at NNPC mega stations in Wuse Zone 1, Wuse Zone 4, Mabushi, and Lugbe.
However, long queues were seen at these stations as motorists rushed to purchase petrol at the adjusted price. Meanwhile, independent and major marketers in the city were still selling between N1,030 and N1,070 per litre.
In Lagos, NNPC outlets such as those on Ago Palace Way and College Road, Ogba, implemented the new rate of N925 per litre, while other stations, including Mobil outlets in the area, sold at higher prices.
Speaking on the latest development, the publicity secretary of IPMAN, Chinedu Ukadike, noted:
“This price adjustment demonstrates the benefits of deregulation in the petroleum sector, where market forces play a key role in determining prices. With both Dangote and the federal government’s refineries poised to operate fully, we can anticipate more competitive pricing that will benefit consumers in the long term.”
Ukadike also encouraged members to adjust their pump prices accordingly:
“We have already started placing orders at the adjusted price, and many of our members have begun lowering their pump prices to align with the market trends. This ensures faster sales and provides consumers with reduced costs.”
Collaboration with Dangote Refinery drives competition
MRS Oil Nigeria Plc also adopted a new price of N935 per litre at its retail outlets nationwide, citing collaboration with the Dangote Petroleum Refinery.
The refinery recently reduced its ex-depot price to N899.50 per litre, prompting MRS to lower pump prices and ensure compliance through a monitoring system.
“MRS is committed to providing eco-friendly petrol and improving Nigeria’s fuel supply chain. Consumers are encouraged to report non-compliant stations by calling 08009447853 or emailing NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM,” the company stated.
Public Reactions
The new pricing also sparked positive reactions from Nigerians. At MRS stations in Lagos, commuters expressed gratitude for the reduction and commended Dangote Petroleum Refinery and MRS Oil for their efforts.
Mrs. Ibukun Phillips, a commuter at the Alapere station on the Lagos-Ibadan Expressway, said:
“This is the best gift of the season. We’re buying standard, eco-friendly petrol at a lower rate. My husband and I have decided to only use MRS because of the quality and its contribution to the economy.”
Commercial bus driver, Adio Ajibade, described the reduction as a “great relief,” adding, “It will reduce transportation costs and benefit Nigerians. God bless Alhaji Aliko Dangote.”
Dr. Tunde Akanni, a public affairs analyst and university lecturer, highlighted the broader implications of the collaboration between Dangote Refinery and MRS Oil.
“This move eases the financial burden on Nigerians and promotes environmentally conscious fuel consumption, benefitting both the economy and public health in the long term,” Akanni said.
