The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of Premium Motor Spirit (petrol) to below N800 per litre, joining a growing price war in the downstream sector.

The move comes after the Dangote refinery slashed its ex-depot price from N828 to N699 per litre, directing all its filling stations to sell petrol at N739 per litre. With private marketers selling fuel at lower rates, NNPC was compelled to adjust its prices to remain competitive and retain customers.

Prior to the reduction, NNPC stations were selling petrol between N825 and N875 per litre, making it difficult to attract motorists who opted for cheaper alternatives. Some NNPC outlets along the Lagos-Ibadan Expressway now sell fuel at N785 per litre.

“Consumers will ultimately benefit from this market-driven competition,” said NNPC CEO Bayo Ojulari, emphasizing that pricing in the downstream sector is now guided by supply and demand rather than regulation.

Independent marketers have also responded to the new pricing reality. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, explained: “Wherever the fuel is cheap, that is where customers go. The market now regulates itself.”

The reductions highlight the impact of domestic refining on Nigeria’s fuel market. With deregulation and the full-scale operations of refineries like Dangote’s, long queues at NNPC stations once caused by price differences have largely disappeared.

Motorists welcomed the cuts, calling them a “Christmas gift” and urging further reductions in the new year. The competition is expected to continue as more marketers adjust their prices in response to the changing market dynamics.