Competition hits oil market as Dangote and NNPCL reduce pump price

The long-awaited competition in Nigeria’s oil and gas downstream sector seems to have begun, as petrol retailers confirmed that the Nigerian National Petroleum Company Limited (NNPC) has lowered its ex-depot price to N899 per litre, just days after Dangote Refinery announced a reduction to N899.50 per litre. Dangote Refinery is also partnering with MRS Oil to reduce pump prices, and Aliko Dangote, President of Dangote Industries Limited, attributed the price decrease to the naira-for-crude deal recently finalized by stakeholders, praising President Bola Tinubu for its positive impact on the Nigerian economy.

At the same time, NNPCL denied claims that it had halted loading its gantries at the Port Harcourt refinery, calling such reports false and accusing some individuals of trying to create artificial scarcity. Initially, the Port Harcourt refinery’s ex-depot price was N1,045 per litre before gradually reducing to N1,020 and now to N899 per litre.

READ ALSO: PIND signs MoU with Okomu oil to promote community development in the Niger delta

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) welcomed the new pricing, seeing it as a significant response to the competitive effects of deregulation. The NNPC’s new ex-depot price is N899 per litre in Lagos and N970 in Warri, Oghara, Port Harcourt, and Calabar. PETROAN believes this will trigger a “price war” among oil marketers, ultimately benefiting consumers.

PETROAN also praised the NNPC’s commitment to making fuel more affordable and expected the price reduction to reduce transportation costs, increase disposable income, and stimulate economic growth. It called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure quality compliance.

Meanwhile, Dangote Industries’ Aliko Dangote commended the positive effects of the crude-for-naira deal on Nigeria’s economy. Dangote’s refinery, which recently lowered petrol prices from N970 to N899.50, has partnered with MRS to sell fuel at N935 per litre through retail outlets nationwide. This new price, which started in Lagos, will be available nationwide starting Monday. Dangote urged other oil marketers, including NNPC Retail, to collaborate with his refinery to ensure Nigerians receive high-quality, affordable petrol.

This move follows the Federal Executive Council’s approval in September for crude to be sold to local refineries in naira, helping stabilize the local currency since its implementation in October.