NNPC Slashes Petrol Pump Prices in Lagos, Matches Dangote Refinery Rates
The Nigerian National Petroleum Company Limited (NNPC) has implemented a significant reduction in petrol pump prices at its filling stations across Lagos State. The new price of N740 per litre represents a N55 decrease from the previous rate of N785 per litre.
Competitive Pricing Aligns with Dangote Refinery
This latest adjustment brings NNPC's pricing in line with the N739 per litre offered by Dangote Refinery partners, including prominent marketers like MRS Oil Nigeria Plc. The alignment follows Dangote Refinery's earlier directive to its partner stations to sell petrol at competitive rates, intensifying market competition.
Kunle Ajimobi, a fuel attendant at an NNPC station in Egbeda, Lagos, confirmed the price change, stating: "Yes, over the weekend, we adjusted our pumps to N740. We were losing customers because other stations around us were selling at lower prices than the previous N785 per litre."
Regulatory Authority Predicts Further Price Declines
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has provided assurance that petrol, diesel, and Liquefied Petroleum Gas (LPG) prices will continue to fall nationwide. NMDPRA's Chief Executive Officer, Saidu Mohammed, made this prediction during an inspection of Aradel Holdings Plc's facilities in Rivers State.
Mohammed attributed the anticipated price reductions to three key factors:
- Increased product supply in the market
- Growing competition among industry players
- Ongoing private-sector investment in Nigeria's oil and gas industry
He specifically noted: "The more supply we have, the lower the cost. This is already reflected in petrol prices, which have fallen from around N1,000 to N800 per litre due to competition."
Dangote Refinery's Market Impact
Dangote Refinery has been offering petrol at prices significantly lower than imported fuel, with its ex-depot price remaining at N699 per litre. This compares favorably to the landing cost of imported petrol, which has fluctuated between N750 and N780 per litre according to the Major Energies Marketers Association of Nigeria (MEMAN).
Since December, Dangote Refinery has implemented a N129 reduction in its petrol gantry price, ensuring consumers pay no more than N740 per litre at partner filling stations. The refinery emphasized its commitment to supplying "high-quality, internationally benchmarked petroleum products at competitive prices" while moderating market prices.
Broader Implications and Future Adjustments
The price reduction in Lagos is expected to provide relief for daily commuters and businesses in Nigeria's commercial capital. NNPC is anticipated to extend similar price adjustments to Abuja and other states in the coming days as market conditions evolve.
NMDPRA's Mohammed encouraged private investors to inject between $30 billion and $50 billion into Nigeria's midstream petroleum sector to sustain the current momentum toward more affordable energy. The regulatory authority's optimistic outlook suggests that improved supply chains and increased competition will continue to benefit Nigerian consumers through stabilized and potentially lower fuel prices in the medium to long term.
