• Marketers struggle as NNPC slashes petrol price to N860/litre
By Adewale Sanyaolu
A fierce price battle between Dangote Refinery and the Nigerian National Petroleum Company (NNPC) Limited has thrown the downstream oil market into confusion, leaving fuel marketers with large quantities of petrol grappling with uncertainty.
The rivalry escalated yesterday after NNPC slashed its petrol price to N860 from N925 per litre, intensifying competition and raising questions about market stability and profitability in the sector.
The decision of NNPC to reduce petrol price may not be unconnected with the recent announcement by Dangote refinery to slash price of petrol to N860 and N865 respectively through its partner filling station.
In a telephone interview with Daily Sun, President of Petroleum Retail Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, confirmed the N860 per liter pump price by NNPC.
Investigations by Daily Sun across some NNPC retail outlets revealed a swift change in the price on its dispensing machines.
Some marketers at the Apapa depot, Lagos, told Daily Sun in confidence that the price war portends grave danger to investments as many oil marketing firms still had large quantity of products in their tanks while others are awaiting new products.
“NNPC and Dangote are big players and could afford to engage in price war. But what about marketers that cannot afford to do that, they will incur a lot of losses as a result of this price war.
As at yesterday(Monday), we didn’t load up to 10 trucks. There is apathy among our customers. They are afraid to purchase products because the price could crash anytime soon.
Dangote in a public notice on the price slash announced three filling stations in Lagos which included; MRS: N860 per litre AP:N865 per litre and Heyden:N865 per litre as it partner off takers.
In a statement by the refinery, it confirmed that the new pricing structure will take effect from Thursday, February 27. “This strategic price adjustment is designed to provide essential relief to Nigerians in celebration of the Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
“It is important to note that Dangote Petroleum Refinery has consistently lowered the prices of petrol and other refined petroleum products to the benefit of Nigerians. This marks the second reduction of PMS prices in February 2025, following a previous decrease of N60 earlier in the month. The Dangote refinery also on Sunday said it would absorb N16bn loss by refunding N65/litre to marketers so Nigerians will benefit from cheaper fuel.
In a statement issued atthe weekend, the refinery said it will refund customers who purchase Premium Motor Spirit (PMS) at rates higher than the advertised prices from any of its key partners – AP (Ardova Plc), Heyden, or MRS – across Nigeria.
The refinery stated that this is part of its ongoing efforts to ensure that Nigerians are the primary beneficiaries of the price reduction and in line with President Bola Tinubu’s Renewed Hope Agenda, which aims to stimulate the economy.
The refinery confirmed it will refund N65 per litre on the over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price of N890 per litre, before the new rate of N825 per litre.
“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 said.
It urged other marketers sourcing stock from it to pass on the benefits of the new pricing to consumers at the retail level, encouraging a collective commitment to affordable, quality products.
Dangote also condemned any exploitation of the new pricing structure. “It is both unpatriotic and detrimental to the welfare of Nigerians for any party to purchase at a rate of N825 per litre and then sell to consumers at N945 or more per litre. This constitutes excessive profiteering, further burdening Nigerians for personal gain,” the statement added.