he Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦910 per litre in the Federal Capital Territory, down from the previous rate of ₦935 per litre.
The price cut, however, is yet to take effect in Lagos and other parts of the country, where petrol prices remain unchanged.
This development follows a strategic move by Dangote Petroleum Refinery, which over the weekend adjusted its gantry price (the depot price at which petrol is sold to marketers) from ₦835 to ₦825 per litre. The move marks the second price reduction in recent weeks. In April, the 650,000 barrels-per-day facility dropped its gantry price from ₦865 to ₦835 per litre.
According to market analysts and reports from Petroleumprice.ng, Dangote’s pricing strategy has been a key factor in reshaping Nigeria’s fuel market. By offering competitive rates and flexible terms to bulk marketers, the refinery has managed to undercut traditional depot owners, who face higher operational costs.
“With over 50% market share, Dangote’s current petrol price of ₦825 per litre is driving intense competition,” the platform noted. “Bulk marketers are now reselling at ₦830 or even slightly below, creating a new pricing benchmark.”
This aggressive pricing model has narrowed the price gap in the market by ₦10 to ₦15, putting increased pressure on smaller, less efficient fuel distributors.
Industry watchers say the local fuel market is undergoing a profound shift. With international crude prices playing a lesser role, domestic pricing strategies and operational efficiency are now the primary determinants of market leadership.
While the current wave of price cuts may benefit consumers in the short term, experts caution that sustained dominance by a single refinery could have long-term implications for competition and fuel supply stability in Nigeria.
