In a dramatic turn of events that is reshaping Nigeria’s fuel market, the Nigerian National Petroleum Company Limited (NNPCL) has slashed its petrol price to N860 per litre, aligning with the Dangote Petroleum Refinery’s latest pricing. This unexpected move, confirmed by independent marketers, signals a brewing price war between two of Nigeria’s biggest fuel suppliers.
On Monday, several NNPCL stations in Lagos quietly adjusted their pumps, dropping the price from N945 per litre to match Dangote’s rate at MRS filling stations. Though the company has not made an official announcement, industry sources say the change reflects a response to Dangote’s aggressive pricing strategy. Just days earlier, Dangote reduced its ex-depot petrol price from N890 to N825 per litre, a move that has sent ripples across the industry.
NNPCL’s spokesperson, Olufemi Soneye, remained silent on the development, declining to comment on the new pricing strategy. However, independent marketers confirmed the shift. Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), revealed that while NNPCL has yet to update its pricing portal, it has assured marketers that adjustments are in progress.
Meanwhile, the President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, also confirmed the price cut, though details remain scarce.
The rivalry between NNPCL and Dangote is no longer subtle. Since December 2024, Dangote’s refinery has aggressively reshaped Nigeria’s fuel market, forcing competitors to adjust their prices in response. Before its entry, NNPCL dominated fuel pricing, often setting the national benchmark. Now, with the 650,000-barrel-per-day Dangote refinery in operation, the dynamics have shifted, breaking NNPCL’s long-standing monopoly and altering the Atlantic Basin gasoline market.
Market observers note that queues once common at NNPCL stations have dwindled, as consumers increasingly flock to Dangote-backed retail outlets. Many drivers claim Dangote’s petrol lasts longer, a perception that has boosted demand for its product.
Despite the price cuts, concerns linger about the sustainability of this fierce competition. Fashola warns that while price reductions benefit consumers, they should not be a ploy to eliminate competitors from the market. He hopes both players maintain a fair and competitive market without resorting to tactics that could harm smaller marketers.
In Abuja, NNPCL stations have lowered prices to N880 per litre, down from N965 last week. However, independent marketers in the capital are struggling to match these reductions. Many filling stations along key routes, including Jabi and Wuse, have retained higher prices, while others have ceased operations altogether. Bovas and Shema stations have made only slight adjustments, selling petrol at N970 and N960 per litre, respectively.
Adding to the drama, Dangote announced a refund of N65 per litre to marketers who bought petrol at the higher rate before Monday’s price cut. While this move has been welcomed, not all affected marketers will benefit, as only recent transactions qualify for the rebate.
With NNPCL and Dangote locked in a high-stakes battle for market dominance, Nigerians watch closely, hoping this competition leads to long-term relief from soaring fuel costs. The question remains—how long can this price war last, and who will ultimately emerge on top?
