NNPC Crashes Petrol Prices to N860 Per Litre to Rival Dangote Refinery as Price War Intensifies
- The Nigerian National Petroleum Company Limited (NNPC) has responded to Dangote's petrol price reduction
- The company also reduced its pump price of petrol to N860 per litre to compete with the mega Dangote Refinery
- The new development has sparked a price war between major petroleum product marketers and independent dealers
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has reduced its pump price of petrol to N860 per litre.
The moves come as a price war between major marketers and independent petroleum dealers, and fluctuations in global oil prices rage on.
Source: Getty Images
NNPC crashes petrol prices to N860 per litre
The new NNPC price became effective on Monday, March 3, 2025, marking an important reduction from the previous price of N920 per litre, relieving Nigerians grappling with high living costs.
The NNPC price reduction has sparked a wave of competition among private dealers.
Dangote Refinery had also crashed its ex-depot price from N890 per litre to N825, the second price cut in one month.
Dangote Refinery designates partners
The mega refinery disclosed in a statement that three filling stations in Lagos, including MRS, AP, and Heyden, will sell the product at N860 and N865 per litre as its partners.
The refinery also said the marketers would sell the product at varying prices across the country, with the Southeast recording the highest costs.
BusinessDay reports that some Nigerians have doubted the sustainability of the price adjustments by the companies.
While some said the price reviews were commendable, others said the petrol prices are very susceptible to changes and volatility in crude oil prices.
Energy policy analyst, Adeola Yusuf, disclosed that the price adjustments can only last as long as crude oil prices remain stable.
He said:
“International crude oil prices are highly politicised and therefore, very volatile. Now that President Trump is threatening to increase the US crude oil reserve, it could push prices further down, leading to a downward review of petroleum product prices.
So, it is a two-edged sword. For now, it favours consumers to the detriment of producers. Tomorrow the table can turn."
Also speaking on the ongoing price war, Wale Ogundeji, an energy analyst told Legit.ng that the situation will help keep prices at more affordable rates.
He said:
"The ongoing price competition between NNPC Limited and Dangote Refinery is a major benefit to Nigerians, as it helps keep fuel prices more affordable. With both companies striving to outdo each other, consumers enjoy lower costs at the pump, reducing the financial strain on households and businesses. This competition also discourages monopolistic control, ensuring that no single company can dictate fuel prices arbitrarily. Additionally, it encourages efficiency and innovation in the industry, leading to better service delivery."
He added that if sustained, the price war could set a new standard for fair pricing in Nigeria’s oil sector, ultimately benefiting the entire economy.
Nigerians compare Dangote petrol with NNPC fuel
The price war between NNPC and the Dangote Refinery came to a head recently when only reviews compared the petrol sold by NNPC and Dangote.
According to the reviewers, the NNPC petrol has a higher burn rate than the Dangote fuel.
Source: Facebook
The disclosure led to the state oil company issuing a rebuttal, saying it does not sell substandard petrol, as most of the products sold at its outlets are sourced from the Dangote Refinery and comply with the best international standards.
Many motorists and petrol users are flocking to Dangote refinery partner stations for lower fuel prices, resulting in long queues at different locations.
They expressed satisfaction with the price difference, highlighting that saving N75 to N80 per liter provides significant relief, especially for commercial transporters.
They also called on Dangote to expand partnerships with independent and major marketers to improve accessibility.
Dangote refinery buys Algeria’s Saharan crude oil
Legit.ng reported that the Dangote Refinery had bought its first consignment of Algeria’s light sweet Saharan blend crude.
The giant refinery reportedly bought one million barrels of cargo from Glencore, the trading firm, this week, with the consignment due to arrive in March.
Reports say the deal was not immediately confirmed by either party, and the purchase price remains unknown.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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