In a move that signals a growing shift in Nigeria’s fuel market dynamics, the Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦910 per litre in Abuja, down from its previous ₦935 per litre rate. This price slash, however, has yet to reflect in Lagos and other major Nigerian cities, indicating a phased rollout or location-based pricing strategy.
The latest reduction comes on the heels of a similar move by the Dangote Petroleum Refinery, which last weekend dropped its petrol gantry price to ₦825 per litre from ₦835. This follows a previous decrease from ₦865 per litre last month, suggesting an intentional effort by Dangote to undercut competitors and consolidate its hold on the domestic fuel market. With a refining capacity of 650,000 barrels per day, Dangote’s aggressive pricing strategy is reshaping the playing field for fuel distribution across the country.
Dangote’s pricing maneuver, though not officially confirmed by the refinery, appears to offer flexible deals to bulk marketers who reportedly resell petrol at around ₦830 per litre or less. According to reports from Petroleumprice.ng, this undercuts depot owners dealing with higher operational costs, creating a pricing gap of ₦10 to ₦15 that favors Dangote’s growing market dominance. This has effectively put pressure on smaller and independent players in the industry.
Fuel market experts are observing a shift from global crude oil price influences to locally driven pricing strategies. With Dangote controlling more than half of Nigeria’s fuel market, its pricing tactics are beginning to dictate the tone and direction of domestic fuel economics. While consumers may see short-term relief at the pumps, especially in regions like Abuja, long-term implications could include reduced competition and possible monopolistic trends if other market players fail to keep up.
Overall, the price reduction by both NNPC and Dangote points to intensifying competition in the fuel sector. It also reflects the broader economic transformations spurred by the end of fuel subsidies and the increasing role of private refiners. As NNPC reacts to market pressure, and Dangote continues to expand its influence, Nigerians may witness further price shifts—raising questions about sustainability, supply stability, and the future structure of the country’s energy landscape.