NNPC slashes petrol price to N910/litre as market competition heats up

In a strategic move that signals intensifying competition in Nigeria’s petroleum sector, the Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N910 per litre in the Federal Capital Territory, Abuja. This marks a N25 cut from the previous rate of N935 per litre.

The price reduction, confirmed on Monday, comes amid heightened pressure from the private sector—particularly the Dangote Petroleum Refinery, which has also been slashing prices in recent weeks in an effort to gain market share in the deregulated downstream market.

Despite the new rate being implemented in Abuja, residents in Lagos and other major cities across the country continue to pay higher prices, as the latest NNPC adjustment is yet to reflect nationwide.

The development follows a recent decision by the Dangote Refinery—Africa’s largest— to lower its gantry price of petrol to N825 per litre, down from N835 per litre.

This move, announced earlier this month, was the second price cut in quick succession. In April, the 650,000 barrels-per-day refinery had reduced its gantry price from N865 to N835 per litre.

The gantry price refers to the ex-depot rate at which products are sold by refiners or importers to marketers, and it has a direct impact on pump prices across the country.

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Industry experts say the NNPC’s price drop is likely a competitive response to Dangote’s aggressive pricing strategy, which is already influencing market dynamics despite the refinery still ramping up to full commercial supply.

“This is a sign that pricing competition in the downstream sector is beginning to take shape,” said Dr. Olufemi Adegoke, an oil and gas analyst. “With local refining capacity increasing, market forces will begin to play a more decisive role in determining prices.”

Although the NNPC remains the dominant player in fuel distribution nationwide, the emergence of local refining options like Dangote’s is expected to drive down logistics costs and potentially create price differentiation based on region, supplier, and volume.

Analysts also note that unless prices are uniformly adjusted across Nigeria, regional disparities in pump prices may persist, creating arbitrage opportunities and raising questions about market transparency in the absence of a pricing template from regulators.

The NNPC has yet to issue a formal statement on when or if the new Abuja price will be extended to other locations. However, market observers anticipate a gradual rollout depending on logistics, supply levels, and commercial strategy.

As Nigeria continues its post-subsidy transition and builds toward self-sufficiency in fuel production, consumers are closely watching how price shifts—whether by state-backed or private players—translate into real relief at the pumps.