Independent petroleum marketers have expressed concern over rising losses following the Nigerian National Petroleum Company Limited’s (NNPC) latest decision to reduce the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦880 per litre in Lagos and ₦935 in Abuja.
The adjustment, implemented on Easter Monday, saw NNPC retail outlets in Lagos lower their prices from ₦925 to ₦880 per litre, while Abuja outlets adjusted from ₦950 to ₦935 per litre. The move comes in the wake of a similar price cut by the Dangote Refinery, which dropped its ex-depot price from ₦865 to ₦835 per litre.
The $20 billion Dangote facility also directed its partners — including MRS, Heyden, and Ardova — to cap their pump prices at ₦890 in Lagos, ₦900 in the South West, ₦910 in the South-South, and ₦920 in the North East.
The NNPC’s reduced rates are now ₦10 cheaper than Dangote’s in Lagos, hinting at a potential price war between Nigeria’s two petroleum giants.
While some NNPC filling stations continue to sell at old prices, sources revealed they are permitted to exhaust existing stock before implementing the new rates.
Confirming the changes, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers were incurring significant losses due to the abrupt price adjustment.
“It is confirmed that NNPC has reduced PMS prices… However, they allow those with old stock to sell at the old rate. But this is affecting marketers — we are losing money,” Fashola told The Punch.
He acknowledged that while the price drop benefits consumers, it leaves marketers to absorb the financial hit — a consequence of Nigeria’s deregulated downstream sector.
“This is the beauty of deregulation. Nigerians are enjoying lower prices, but marketers are bearing the brunt,” he added.
When asked about the possibility of prices dropping further — potentially to ₦800 or ₦700 — Fashola declined to speculate, noting that fuel pricing is largely influenced by global crude oil prices and the naira-to-dollar exchange rate.
“If crude drops to $50 per barrel, it affects government revenue and the broader economy. These things are interconnected,” he noted.
The latest round of price cuts follows the Federal Government’s recent directive to continue the naira-for-crude swap deal, which experts believe is aimed at stabilizing domestic fuel supply and prices.
Despite the short-term losses to marketers, the development marks a positive shift for consumers amid Nigeria’s ongoing battle with inflation and high transportation costs.
