NNPCL Joins Fuel Price Drop

The Nigerian National Petroleum Company Limited (NNPCL) has initiated a significant reduction in its Premium Motor Spirit (PMS) pump price, responding directly to cuts in ex-depot rates by the Dangote Refinery and key depot owners. This move is poised to intensify the ongoing fuel price competition across the country.

A check across filling stations in Abuja on Thursday confirmed that the state-owned firm has dropped its price for petrol to N930 per litre, down from the previous N945.

This N15 per litre downward adjustment has been swiftly implemented across NNPCL retail outlets. The new rate is visible in major areas including Kubwa Expressway, Gwarimpa, Wuse Zone 4, and Zone 6, as well as stations throughout the Federal Capital Territory and its environs.

The price action by the national oil company triggered an immediate response from independent marketers. Other Nigerian filling stations, such as Ranoil in Gwarimpa, were observed reducing their fuel pump prices by N5, settling at N935 per litre from their previous N940.

Similarly, other major marketers, including MRS and AP Ardova filling stations in Abuja, are now dispensing their petrol within the range of N930 and N935, cementing the new price floor in the capital.

This rapid retail response comes directly after Dangote Refinery and other key depot owners, notably Pinnacle and Aiteo, dropped their wholesale ex-depot prices. The ex-depot rates were cut by at least N10 per litre, falling to N846, N845, and N844 per litre, respectively, as of Thursday morning.

The development reinforces the analysis by industry experts. Earlier this week, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, had predicted that fuel prices were likely to drop further as the petrol price war intensifies across the deregulated market.

This competition, largely driven by the entrance of the Dangote Refinery, offers short-term relief to consumers grappling with high inflation. However, industry stakeholders continue to warn that such rapid price fluctuations may hurt marketers and potentially create long-term instability if not rooted in sustainable market fundamentals.