The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of Premium Motor Spirit (PMS), popularly known as petrol, to around ₦835 per litre in major cities its third price cut in less than a month as competition from newly operational local refineries intensifies.
The latest adjustment sees NNPCL’s retail outlets in Lagos dispensing petrol between ₦838 and ₦840 per litre at Igando, Lekki, and Iwaya, while Abuja stations sell at an even lower ₦835. The price represents a notable drop from the previous average of ₦915 per litre, signaling growing sensitivity to shifting market forces in Nigeria’s deregulated downstream sector.
Industry sources attribute the reduction to softer ex-depot prices, lower freight and insurance costs, and increased local supply from the Dangote Refinery and other independent marketers. Private depot owners, including Dangote, have reportedly cut their ex-depot rates to between ₦699 and ₦800 per litre, prompting marketers such as MRS, BOVAS, and AA Rano to follow suit with pump prices ranging from ₦739 to ₦865 in Abuja.
Analysts say these changes reflect the emerging dynamics of a competitive local refining environment, which is gradually reducing Nigeria’s dependence on imported fuel. Consumers, in turn, are enjoying short-term relief at the pumps, particularly amid the heightened travel and spending associated with the festive season.
However, experts caution that the long-term stability of petrol prices remains uncertain, hinging on global crude oil trends, exchange rate fluctuations, and consistent domestic refinery output. Nonetheless, the current wave of price cuts signals a promising shift toward a more responsive and transparent fuel market, with stakeholders calling for sustained open access and policy consistency to maintain downward pressure on costs.
