In a bid to provide consumers with better value, the Nigerian National Petroleum Company (NNPC) Limited has reduced the price of Premium Motor Spirit (PMS), commonly known as petrol, to N910 per litre from the previous rate of N935 per litre in Abuja. However, this price reduction has not yet been applied in Lagos or other cities across the country.
At the same time, Dangote Petroleum Refinery has also adjusted its petrol price, dropping the gantry price to N825 per litre from N835 per litre. This change, initiated last weekend, follows an earlier reduction in the price to N835 per litre from N865 per litre. The move is part of Dangote Refinery’s strategy to strengthen its position in Nigeria’s competitive fuel market.
The latest price cut by Dangote is seen as a significant attempt to dominate the market. Sources reveal that the refinery is offering flexible deals to bulk marketers, who are now reselling petrol at N830 per litre or slightly lower. This aggressive pricing strategy has put pressure on competitors and is closing the price gap by about N10 to N15 per litre.
As Dangote continues to control more than half of Nigeria’s fuel market share, its approach is shaping the market dynamics. The company’s operational efficiency and competitive pricing have put it ahead of other depot owners who are struggling with higher operational costs. Although this price competition benefits consumers in the short term, it could have long-term consequences on the fuel supply market in Nigeria.
