NNPC Raises Petrol Price to N890/Litre, Surpassing Market Average Amidst Downstream Sector Tensions
The Nigerian National Petroleum Company (NNPC) Ltd has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from N855 to N890 per litre across its retail outlets. This move now places the NNPC’s petrol price above the national market average of N865 per litre. The hike, implemented in two stages over the weekend, triggered shock and frustration among motorists already grappling with declining purchasing power and economic hardship.
A spot-check by the Daily Sun confirmed that most major marketers continued to sell petrol at around N865 per litre, while others priced it as low as N815–N839 per litre. Despite the higher prices at NNPC stations, no official explanation has been offered for the hike. This development comes amid growing concerns from the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) about unrealistic pricing trends and unhealthy competition driven by price cuts from Dangote Refinery.
PETROAN President Billis Gillis Harry criticized Dangote Refinery for repeatedly slashing fuel prices—over ten times in the past two months—arguing that such pricing tactics create unsustainable market conditions. He noted that smaller marketers are forced to reduce prices to remain competitive, which could lead to financial losses and destabilization across the sector. According to him, prices around N815–N820 per litre are unsustainable and don’t reflect true economic or operational realities.
The association warned that the ongoing price war and alleged market manipulation by Dangote could push many smaller operators out of business. Dangote’s growing influence in the downstream sector—highlighted by its forward integration plans and deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers—has raised concerns about potential job losses, market monopoly, and consumer exploitation. Marketers fear that Dangote’s pricing strategy could eventually lead to a massive shutdown of filling stations across the country.
PETROAN urged regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene. They called for tighter scrutiny of price-setting practices and advocated for a balance between business sustainability and consumer protection. The body insists that while Dangote’s vision may benefit the industry long-term, it must not come at the cost of market fairness or public welfare.
Source:The sun