NNPCL UNDER PRESSURE TO CUT PETROL PRICES AMID COMPETITION WITH DANGOTE REFINERY. (PHOTO).

 NNPCL Under Pressure to Cut Petrol Prices Amid Competition with Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) is considering a fresh reduction in petrol prices following a price cut announced by MRS filling stations in partnership with Dangote Refinery.

This development was confirmed in separate interviews with the National President of the Petroleum Products Retail Outlet Owners Association (PETROAN), Billy Gillis-Harry, and the Spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike.

On Monday, MRS filling stations reduced their pump prices to ₦925 per litre in Lagos, ₦933 in the South-West, ₦945 in the North, and ₦955 in the South-East, down from the previous rate of around ₦970 per litre. This follows Dangote Refinery’s earlier ex-depot price reduction from ₦970 to ₦870 per litre on February 1, 2025.

NNPCL Likely to Follow Suit

Gillis-Harry and Ukadike believe that NNPCL will soon lower its petrol prices to stay competitive in the downstream sector.

Gillis-Harry: “NNPC has no choice but to reduce prices. Consumers will naturally opt for the cheaper option.”

Ukadike: “With the ongoing price war between NNPCL and Dangote Refinery, NNPCL will have to respond with a price cut.”

Fuel Price Cuts Yet to Impact Transport Costs

Despite the price reductions, transportation and food costs remain unchanged.

Gillis-Harry: "Weak purchasing power is why fuel price cuts aren’t affecting transport fares or food prices."

Ukadike: "The impact will be gradual and will eventually reflect in transportation and other sectors."

Concerns Over Frequent Price Adjustments

Gillis-Harry criticized the frequent petrol price fluctuations, warning that they could disrupt fuel supply and cause losses for marketers who purchased stock at higher rates.

“Marketers who bought fuel at ₦970 per litre cannot sell below cost.”

“MRS and Dangote Refinery still face challenges due to weak consumer purchasing power.”

In December 2024, Dangote Refinery had reduced its petrol ex-depot price from ₦899.50 to ₦870, while NNPCL also announced a price drop. The ongoing price rivalry between both entities has led to multiple fuel price reductions in recent months.