The Nigerian National Petroleum Company Limited (NNPC) has reduced the pump price of Premium Motor Spirit (PMS) to N1,299 per litre, a N36 reduction from its previous N1,335, in a move that intensifies competition in Nigeria's downstream oil market. The new price is effective at NNPC retail outlets across Abuja, including Lugbe, Kubwa Expressway, and Wuse Zone 3, as the state-owned company responds to recent price cuts by competitors.
Price Reduction Follows MRS Move
The NNPC's adjustment comes just two days after Dangote Refinery-backed MRS filling stations slashed their petrol price by N40 per litre, bringing it to N1,265. This move by MRS has put pressure on other filling stations that were selling between N1,300 and N1,310 per litre, forcing them to reconsider their pricing strategies.
Industry observers note that these reductions reflect the growing impact of market competition following the deregulation of the downstream petroleum sector, which has allowed market forces to determine prices.
Dangote Offers Cheapest Ex-Depot Price
While retailers adjust pump prices, Dangote Petroleum Refinery maintains Nigeria's lowest ex-depot petrol price at N1,215 per litre, according to latest market data. This price is cheaper than every major private depot tracked across Lagos, Warri, and Calabar, strengthening Dangote's competitive position in the wholesale market.
The refinery's pricing allows marketers to source fuel at lower costs, potentially leading to further reductions in pump prices as competition intensifies among retailers nationwide.
Private Depots Still Selling Higher
Data compiled by Petroleumprice.ng shows that most major private depots in Lagos, including Aiteo, Ascon, Gulf Treasure, Nipco, Pinnacle, and Shema, are selling petrol at N1,216 per litre, slightly above Dangote's price. Ardova and Emadeb are offering at N1,217 per litre, while MRS depot has the highest Lagos ex-depot price among the listed facilities at N1,222 per litre.
Outside Lagos, the price gap widens. In Warri, depots such as Mainland, Sobaz, and Soroman are selling at N1,220 per litre, while Matrix has pegged its price at N1,225 per litre. In Calabar, Sigmund is selling at N1,222 per litre, while A.Y.M Shafa, Nepal, and Optima offer at N1,228 per litre. Rain Oil tops the list at N1,230 per litre, leaving a N15 per litre gap between its price and Dangote's ex-depot rate.
Impact on Marketers and Consumers
The widening price differences are expected to encourage more marketers to source products from Dangote Refinery, which could lead to further reductions in pump prices across Nigeria. This comes as depot owners have begun reducing prices following Dangote's decision to resume selling petroleum products in naira, offering relief to marketers, motorists, and consumers.
These adjustments occur despite continued surges in global crude oil prices, which had recently pushed domestic petrol prices to fresh highs due to supply concerns and geopolitical developments.
