Fuel price war intensifies as Dangote, NNPC reduce petrol cost again

• Dangote Refinery and the NNPC Limited person announced caller petrol prices, but galore filling stations are yet to set their pumps
• Marketers person expressed mixed reactions, with immoderate welcoming the simplification and others raising concerns implicit its interaction connected investments
• PETROAN urged for much stableness successful pricing, suggesting a 180-day reappraisal play to forestall unpredictable terms changes that could harm the sector

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

Dangote Petroleum Refinery has reduced the terms of premium centrifugal tone (PMS), commonly known arsenic petrol, for the 2nd clip successful 1 week.

As of April 16, 2025, the ex-depot terms (gantry price) has dropped from N865 to N835 per litre, pursuing an earlier simplification from N880 to N865.

The Nigerian National Petroleum Company Limited (NNPCL) besides precocious announced a terms slash of its petrol pump terms to N910 per litre from N925 per litre connected Wednesday, April 16.

Despite this terms cut, galore filling stations, including those operated by the NNPC Limited, person not yet adjusted their prices.

Dangote, NNPC slash petrol prices again but filling stations yet to set their pumps
Source: UGC

While immoderate marketers person welcomed Dangote's decision, others person expressed concerns, calling the terms simplification “arbitrary” and informing that it could pb to losses successful the market.

Dangote announced terms reduction

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries, precocious announced successful a connection that cardinal partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, volition present merchantability petrol astatine reduced prices.

In Lagos, the terms volition driblet to N890 per litre, down from N920. In the South West, it volition beryllium N900 per litre, reduced from N930, portion successful the North West and North Central, it volition outgo N910 per litre, down from N940.

In the South East, South South, and North East, the terms volition beryllium N920 per litre, lowered from N950.

This terms simplification highlights the refinery's committedness to providing high-quality petrol astatine affordable rates for consumers nationwide.

The connection besides urged manufacture stakeholders, including marketers and distributors, to proceed sourcing their products from the refinery to guarantee that the benefits of these terms cuts are afloat realised crossed the country.

Why petrol terms reductions

The caller driblet successful petrol prices is partially attributed to the falling terms of crude oil. In caller weeks, planetary crude lipid prices person been volatile, influenced by the ongoing US tariff war.

On Wednesday, crude lipid prices roseate by much than 2% arsenic expectations grew that tensions successful the US-China commercialized warfare mightiness ease. By 1:28 p.m.

ET, Brent crude was up 2.09%, trading astatine $66.02, portion the US benchmark, West Texas Intermediate (WTI), roseate 2.12%, reaching $62.63.

However, by 8 p.m. yesterday, Brent crude prices dipped further to $65.77.

Many filling stations yet to set prices

As of the clip of reporting, astir filling stations crossed Nigeria person yet to set their pump prices, with immoderate stations inactive selling a litre of petrol (PMS) for arsenic precocious arsenic N990 successful definite areas.

In Kano, for instance, immoderate autarkic stations were selling petrol for N990 per litre, portion stations operated by NNPC and MRS had prices acceptable astatine N945 per litre.

In Maiduguri, Borno State, the terms ranged betwixt N950 and N980 per litre. In the superior city, Abuja, NNPCL was selling petrol astatine N950 per litre, portion different large stations were charging betwixt N955 and N960.

There are indications that NNPCL volition yet set its prices, arsenic is typically the lawsuit whenever Dangote Refinery makes a terms cut.

However, arsenic of the clip of this report, nary terms accommodation has been made by NNPCL oregon different large stations.

Marketers explicit interest implicit ‘arbitrary’ terms change

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed mixed reactions to the caller terms reduction, welcoming the determination but cautioning that specified changes should not beryllium arbitrary.

Dr. Billy Gillis-Harry, the nationalist president of the association, spoke with Daily Trust and emphasised that portion the simplification benefits Nigerians by improving vigor availability and affordability, predominant and unpredictable terms changes tin person antagonistic effects connected investments successful the downstream sector.

Dr. Gillis-Harry suggested that a 180-day terms reappraisal period, arsenic projected by marketers, should beryllium implemented. This would let marketplace players to show trends and measure the terms absorption much effectively, ensuring a much unchangeable and informed attack to pricing.

Gillis-Harry said:

"We are blessed arsenic PETROAN to perceive prices being reduced but the terms simplification and summation should not beryllium arbitrary, should beryllium what the marketplace should dictate truthful that we bash not make immoderate benignant of artificial trouble of availability of funds to put successful petroleum concern for the usage of Nigerians. But different than that, it is simply a invited development."

Another petroleum marketer, Otunba Adetunji Oyebanji, stated that determination is thing antithetic astir the caller terms reduction.

He explained that successful a afloat deregulated marketplace similar Nigeria's, prices volition people fluctuate owed to contention and marketplace dynamics, causing them to spell some up and down.

He said:

“This is each astir contention and marketplace dynamics. Be watching marketplace dynamics. If crude is doing something, you would cognize it would impact the price, if speech complaint is being affected, a terms alteration is apt to come. If you ticker each these factors that impact price, you would beryllium capable to foretell whether thing is going to happen. It’s not rocket science."

However, helium noted that immoderate marketers inactive person aged stock, which means they whitethorn beryllium hesitant to little their prices quickly, arsenic doing truthful could effect successful a nonaccomplishment for them.

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Source: Legit.ng