NNPC, Marketers Reduce Petrol Pump Prices Following Dangote Refinery’s Ex-Depot Slash

Nigeria’s downstream petroleum sector witnessed a major shift as the Nigerian National Petroleum Company Limited (NNPC) and several independent marketers announced a reduction in petrol pump prices following Dangote Refinery’s decision to cut its ex-depot price. The development marks one of the most significant adjustments in the domestic fuel market since the removal of subsidies and signals a competitive turn that could benefit millions of Nigerians.

The Dangote Refinery, Africa’s largest and a long-anticipated game-changer for Nigeria’s energy landscape, recently slashed the ex-depot price of Premium Motor Spirit (PMS) by ₦30 per litre. This move immediately prompted both NNPC and independent marketers to follow suit, lowering retail pump prices across filling stations nationwide. Industry players described the move as a breakthrough for market competitiveness, as it effectively breaks NNPC’s long-standing dominance as the sole petrol importer.

According to market sources, the NNPC adjusted its pump price in major cities like Lagos, Abuja, and Port Harcourt to reflect the reduced wholesale cost, with average retail prices now ranging between ₦570 and ₦590 per litre, down from the previous ₦600–₦620 range. Independent marketers, particularly those affiliated with the Independent Petroleum Marketers Association of Nigeria (IPMAN), have also responded by lowering prices at their outlets, a development welcomed by consumers who have struggled with high transport and living costs.

The impact of the price slash is already being felt across the transport sector, where commercial drivers and fleet operators are adjusting fares downward in response to reduced petrol costs. In Lagos, Abuja, and Kano, commuters reported modest reductions in bus fares, raising hopes that further cuts could follow if the trend is sustained. Economists argue that lower fuel prices will ease inflationary pressures, particularly in food prices and transportation costs, which are heavily influenced by petrol prices.

Reacting to the development, NNPC confirmed that it had aligned its retail prices with the prevailing ex-depot rates set by Dangote Refinery, in line with market dynamics. The state-owned company emphasized that the new price regime is a reflection of Nigeria’s move toward a deregulated petroleum sector where competition, not government intervention, determines costs.

“This is a significant step toward ensuring Nigerians enjoy the benefits of local refining capacity. The entry of Dangote Refinery into the domestic market has introduced much-needed competition, and we believe consumers will be the ultimate winners,” an NNPC spokesperson said.

For Dangote Refinery, the price cut is seen as part of its strategy to capture market share while positioning itself as a dependable supplier for Nigeria and the wider West African region. The refinery, which has the capacity to refine 650,000 barrels per day when fully operational, has been gradually ramping up production and distribution since it commenced operations.

Industry analysts highlight that the move could reshape Nigeria’s downstream sector by reducing dependence on imported petrol, stabilizing supply chains, and strengthening foreign exchange reserves. With local refining now taking center stage, the country is expected to save billions of dollars previously spent on imports while creating jobs across the value chain.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) praised Dangote’s decision, describing it as a relief for marketers and consumers alike. IPMAN representatives noted that the refinery’s presence has eased supply constraints, reduced transportation bottlenecks, and allowed for more efficient distribution across the country.

Nigerians have also reacted positively to the development, with many expressing cautious optimism that lower petrol prices could ease the financial strain on households. However, some warned that sustaining the cuts will depend on consistent supply from Dangote Refinery, stability in crude oil prices, and government’s ability to maintain a truly deregulated environment free of hidden subsidies.

Energy experts argue that the significance of the price slash extends beyond short-term relief. By injecting competition into the market, Dangote Refinery has effectively compelled NNPC and other marketers to adjust their pricing strategies. This, they say, could usher in a new era of price stability and efficiency, provided the refinery continues to operate optimally and avoids production setbacks.

Despite the optimism, challenges remain. The volatility of global crude oil prices, the naira’s exchange rate fluctuations, and lingering infrastructure bottlenecks in distribution could affect the sustainability of the current price levels. Additionally, regulatory clarity and enforcement will be key to preventing sharp practices among marketers.

Nevertheless, many stakeholders agree that the current development is a positive step for Nigeria’s energy security and economic growth. By leveraging local refining capacity, the country is not only reducing its reliance on imports but also enhancing its capacity to stabilize domestic prices in the face of global shocks.

For millions of Nigerians, particularly low-income earners who have borne the brunt of rising transport and food costs, the reduction in pump prices is a welcome relief. Whether this marks the beginning of a long-term trend or a temporary reprieve will depend on how the market evolves in the coming months.

As Nigeria continues its journey toward a deregulated petroleum market, the interplay between Dangote Refinery, NNPC, and independent marketers will determine how competitive and consumer-friendly the sector becomes. For now, Nigerians are cautiously celebrating what appears to be the first tangible sign that local refining can deliver real benefits to ordinary citizens.