The Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from N935 to N910 per litre in Abuja.
The price cut, however, has yet to take effect in Lagos and other parts of the country, where the pump price remains unchanged.
This latest adjustment comes amid increasing competition in the downstream petroleum sector, particularly with the growing influence of Dangote Petroleum Refinery. The 650,000-barrels-per-day refinery recently slashed its gantry price of petrol to N825 per litre, down from N835, marking its second price cut in just over a month.
In April, Dangote had lowered its price from N865 to N835 per litre as part of its efforts to capture a larger share of the local market. The latest reduction reflects the refinery’s aggressive pricing strategy and operational efficiency aimed at staying ahead of competitors.
Industry observers say Dangote now controls over 50% of Nigeria’s fuel market. According to Petroleumprice.ng, the refinery offers flexible pricing arrangements to its bulk marketers, allowing them to resell at N830 or slightly lower, thereby closing the price gap with traditional depot operators and increasing pressure on rival suppliers.
“Crude prices now play a minimal role in domestic pricing. Local supply dynamics and refinery competition are driving the market,” the report noted.
While consumers may enjoy short-term relief from falling petrol prices, experts warn that the ongoing price war could reshape the country’s fuel supply landscape, potentially squeezing out smaller market players and consolidating market power in the hands of larger operators.
As the battle for market dominance continues, more price adjustments are likely in the coming weeks, especially if other players move to match Dangote’s pricing strategy.
