In a significant development for Nigerian motorists, the Nigerian National Petroleum Company Limited (NNPCL) and several major oil marketers have announced substantial reductions in the pump price of Premium Motor Spirit (PMS), commonly known as petrol. This marks the second adjustment by the NNPC within a 48-hour period, signaling a rapid response to shifting market dynamics.
Widespread Price Cuts Across Major Stations
The new price reductions, confirmed on Thursday, December 18, 2025, are a direct consequence of increased competition following a strategic move by the Dangote Refinery. The refinery slashed its gantry price to N699 per litre, a decision that is now cascading through the downstream sector.
Checks at various retail outlets revealed the following new prices:
- NNPC Retail: In Lagos, petrol now sells at N840 per litre, a N35 reduction from the previous N875. In Abuja, the drop is more pronounced, with prices falling to N835 per litre from N915, representing a hefty N80 decrease.
- MRS Oil Nigeria Plc: Emerged with one of the most competitive rates, now selling at N739 per litre in Abuja, down from N910. Its Lagos stations also adjusted downwards.
- Other Marketers: AA Rano reduced its Abuja price to N840 from N910, while Bovas adjusted to N865 from N910, reflecting reductions ranging between N45 and N171 per litre.
Dangote Refinery Triggers Market Realignment
The catalyst for this wave of price cuts is clear. The Dangote Refinery's reduction of its ex-depot price to N699 per litre is one of approximately twenty adjustments made by the company in the year 2025 alone. This aggressive pricing strategy is aimed at aligning fuel costs with current market realities and providing relief to consumers.
Billionaire industrialist Aliko Dangote was quoted earlier in the week emphasizing the enforcement of the new pricing for all stations sourcing products from the refinery. "Starting Tuesday, MRS will begin selling petrol at N739 per litre. We will definitely enforce that low price. You won't buy petrol at N970 per litre again," Dangote stated.
The refinery's decision has also pressured private depot operators, who have begun reviewing their rates for marketers. Current depot prices across the country are now reported to be between N702.50 and N820 per litre, creating a trickle-down effect that is finally reaching retail pumps.
Implications for Consumers and the Market
Industry analysts view this development as a positive step that could ease the financial pressure on transportation and logistics. The reduced pump prices are expected to lower the cost of goods and services for the average Nigerian.
The price war is also fostering healthy competition among downstream operators, compelling major and independent marketers to review their pricing models. It is anticipated that more filling stations, especially those still selling at higher rates, will align their prices in the coming days to remain competitive.
This series of adjustments represents a notable shift in Nigeria's fuel supply landscape, with local refining capacity beginning to exert a direct influence on market prices. For consumers, the immediate benefit is tangible savings at the pump, a welcome relief amid broader economic challenges.
