The battle for Nigeria’s fuel market is intensifying as the Nigerian National Petroleum Company Limited (NNPCL) has reduced its petrol price to ₦860 per litre, following a recent price cut by Dangote Refinery.
A market survey conducted on Tuesday confirmed the new pricing strategy by the NNPCL, signaling a growing competition between the state-owned oil firm and Dangote’s private refinery.
Dangote’s Bold Price Reduction Strategy
Just days ago, Dangote Refinery announced a bold move to absorb a ₦16 billion loss by refunding ₦65 per litre to marketers, ensuring Nigerians benefit from cheaper fuel. The company also lowered its gantry price from ₦890 to ₦825 per litre and promised refunds to buyers paying above its advertised rates through major distributors like AP (Ardova Plc), Heyden, and MRS.
According to Dangote Refinery, this step aligns with President Bola Tinubu’s Renewed Hope Agenda, aimed at easing economic burdens on Nigerians. The company assured that effective February 27, 2025, its partners would not suffer losses due to the price adjustment, ensuring immediate nationwide implementation.
NNPCL Responds with a Price Slash
In response, the NNPCL swiftly cut its pump price to ₦860 per litre across Lagos on Monday, fueling an ongoing price war between the state oil giant and independent marketers. Sources in the oil sector confirmed the price adjustment but noted that the NNPCL had yet to issue an official memo on the change.
Who Produces Nigeria’s Petrol?
Currently, Dangote Refinery and NNPCL’s Port Harcourt refinery are Nigeria’s only operational petrol producers. However, NNPCL recently admitted that it is still sourcing fuel from Dangote Refinery for its Lagos stations, as it has not imported any fuel in 2025.
Impact on Consumers and Market Trends
The impact of the price battle is already visible, as fuel queues have shifted from NNPCL stations to private outlets like MRS, where consumers claim Dangote’s petrol lasts longer in their tanks.
Awaiting NNPCL’s Official Response
As of now, NNPCL spokesperson Olufemi Soneye has yet to comment on the latest development.
