NNPCL Under Pressure to Cut Petrol Prices as Dangote Refinery Slashes Rates

The Nigerian National Petroleum Company Limited (NNPCL) is under growing pressure to lower petrol prices as MRS filling stations, in partnership with Dangote Refinery, announced a price cut on Monday.

Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) President, Billy Gillis-Harry, and Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, confirmed this development in separate interviews.

MRS revealed in an official post on Monday that its pump prices had dropped to N925 per litre in Lagos, N933 in the South-West, N945 in the North, and N955 in the South-East—down from around N970. This follows Dangote Refinery’s February 1 decision to cut its ex-depot price from N970 to N870 per litre.

Industry experts believe NNPCL will be forced to reduce its pump prices to remain competitive. Gillis-Harry stated that NNPCL “has no choice but to reduce petrol retail prices because it is not possible to see a product at a cheaper price and still go for NNPCL.” Ukadike echoed this sentiment, describing the ongoing price battle between NNPCL and Dangote Refinery as a major factor pushing fuel prices downward.

Despite the reductions, transportation and food prices have remained unchanged. Gillis-Harry attributed this to weak consumer purchasing power, arguing that price reductions alone are insufficient to lower living costs without increased economic productivity. Meanwhile, Ukadike maintained that the effects of lower petrol prices would be felt gradually over time.

There are also concerns about the frequent fluctuations in petrol prices. Gillis-Harry warned that constant price adjustments could threaten fuel security and lead to losses for marketers who had purchased stock at higher prices. He pointed out that many marketers still hold unsold petrol bought at N970 per litre, making it unfeasible to sell at a loss.

The ongoing rivalry between NNPCL and Dangote Refinery has driven fuel prices down since late 2024. Last December, Dangote Refinery reduced its petrol ex-depot price from N899.50 to N970 per litre, prompting NNPCL to follow suit with its own price cut. With competition intensifying, stakeholders expect further adjustments in the coming weeks.