The battle for market dominance between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has intensified, as NNPCL slashed the price of Premium Motor Spirit (PMS) to ₦860 per litre.
A market survey conducted by Channels Television on Tuesday confirmed the price reduction.
NNPCL’s move follows Dangote Refinery’s recent announcement that it would absorb a ₦16 billion loss by refunding ₦65 per litre to fuel marketers, ensuring that Nigerians benefit from more affordable fuel.
In a statement issued over the weekend, Dangote Refinery assured customers that it would reimburse those who purchased PMS at higher-than-advertised rates from its key partners—AP (Ardova Plc), Heyden, and MRS—nationwide. This initiative aligns with its ongoing efforts to make fuel more affordable and supports President Bola Tinubu’s Renewed Hope Agenda, aimed at stimulating the economy.
“The step, effective February 27, 2025, guarantees that none of our valued business partners will experience a loss due to the price change. More importantly, it ensures that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people,” the statement read.
To reinforce this strategy, Dangote Refinery recently lowered its gantry price from ₦890 per litre to ₦825 per litre.
In response, NNPCL swiftly adjusted its pump price to ₦860 per litre across its Lagos stations on Monday, escalating the price war between the state oil company and independent oil marketers. While some marketers confirmed the price change, they noted that NNPCL had yet to issue an official memo regarding the new pricing.
Currently, Dangote Refinery and NNPCL’s Port Harcourt Refinery are the only domestic petrol producers in Nigeria. However, NNPCL has disclosed that it still procures petrol from Dangote Refinery for its Lagos stations, as it has not imported fuel this year.
On Wednesday, Dangote Refinery further reduced its fuel price, introducing a new pricing structure for the Nigerian market.
Amid these developments, fuel queues, once a common sight at NNPC stations, have shifted to private filling stations such as MRS. This trend has been attributed to price differentials and claims that Dangote’s petrol offers better fuel efficiency.
As of now, NNPCL spokesperson Olufemi Soneye has not responded to official inquiries regarding the situation.