NNPCL under pressure to lower petrol prices after Dangote Refinery cuts costs
The Nigerian National Petroleum Company Limited (NNPCL) is facing pressure to reduce petrol prices as MRS Filling Station, in partnership with Dangote Refinery, announced a price cut on Monday.
Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlet Owners Association, and Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, shared this development in exclusive interviews with DAILY POST.
On Monday, MRS Filling Station revealed a price reduction for the first time in 2025. The new prices are N925 per litre in Lagos, N933 in the South West, N945 in the North, and N955 in the South-East, down from around N970 previously. This follows an earlier price drop from Dangote Refinery, which reduced its ex-depot price from N970 to N870 per litre on February 1, 2025.
Gillis-Harry and Ukadike both believe that NNPCL will soon announce a price reduction to stay competitive in the country’s downstream sector.
Gillis-Harry explained, “NNPC has no choice but to reduce petrol retail prices because it is not possible to see a product at a cheaper price and still go for NNPCL.”
Ukadike also pointed out that the price war between Dangote Refinery and NNPCL means the latter cannot afford to keep its prices high for long. “Once Dangote Refinery announces a price drop, NNPC will follow suit,” he said.
Why the price cuts are not easing transportation costs
Despite the recent petrol price reductions, Gillis-Harry noted that transportation and food prices have not dropped significantly. He attributed this to the weak purchasing power of Nigerians. “The cost of transportation has not reduced despite the reduction in retail fuel prices,” he explained. “This tells you that the purchasing power of Nigerians is very weak.”
He added that the country needs to focus more on boosting sectors like farming, fishing, and technology to improve economic activity.
Ukadike, however, believes the effects of the price cuts will be felt gradually, especially in transportation, goods, and services.
Concerns over constant petrol price changes
Gillis-Harry expressed concern over the frequent adjustments in petrol prices, warning that it could hurt petrol security. He pointed out that sudden price hikes cause losses for marketers, who may be stuck with stock purchased at older, higher prices.
“There was a lot of fuel purchased at the old price that is still in the system and hasn’t been sold yet. Marketers can’t sell below the cost price,” he said.
Last December, Dangote Refinery had raised its ex-depot price from N899.50 per litre to N970, with NNPCL following suit with its own price drop to petroleum markets.
This ongoing price rivalry between NNPCL and Dangote Refinery has led to a steady decrease in fuel prices towards the end of 2024.
