Some Fuel Stations in Abuja Now Selling Petrol Cheaper Than NNPC Amid Market Shifts

Following a recent hike in petrol prices, several fuel stations in Abuja are now selling petrol at prices lower than those offered by the Nigerian National Petroleum Company Limited (NNPC). This development marks a significant shift in Nigeria’s fuel market, as independent marketers begin to compete with NNPC.

On Wednesday, fuel prices surged to N998 and N1,030 per litre at NNPC stations in Lagos and Abuja, respectively, after the NNPC announced it had terminated its exclusive purchase agreement with Dangote Refinery. The move is expected to open up the market for other suppliers to set their own rates.

By Thursday morning, several independent stations in Abuja were selling petrol below NNPC’s prices. NIPCO and Mobil stations on Ahmadu Bello Way and Airport Road were offering fuel at N1,025 per litre—N5 less than NNPC’s highest rate. However, prices varied across the capital: Total Energies on Sultan Abubakar Way sold at N1,080 per litre, while Eterna station in Utako charged N1,120 per litre. Some stations, like DanMarna in Lugbe, priced petrol at N1,100.

The shift follows NNPC’s decision to stop bearing the cost of a subsidy on petrol, which had allowed it to buy fuel at a lower rate from Dangote Refinery. Previously, NNPC claimed it was buying at N898.78 per litre and selling to marketers at N765.99, subsidizing the difference. With this subsidy now deemed unsustainable, market prices are adjusting.

As the market adapts to this change, independent marketers are expected to begin direct negotiations with Dangote Refinery to set their own pricing. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that discussions with Dangote are ongoing, with prices expected to be finalized soon.