The Nigerian National Petroleum Company Limited (NNPCL) is considering a fresh reduction in the price of premium motor spirit (PMS) following a price cut by MRS filling stations in partnership with Dangote Refinery.
This development was confirmed in separate interviews with NEWS BULLETIN by the National President of the Petroleum Products Retail Outlet Owners Association, Billy Gillis-Harry, and the Spokesperson for the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike.
On Monday, MRS announced its new fuel pump prices on its official X account, dropping to N925 per litre in Lagos, N933 in the South-West, N945 in the North, and N955 in the South-East—down from around N970 previously. This follows Dangote Refinery’s February 1, 2025, decision to lower its ex-depot price from N970 to N870 per litre.
Both Gillis-Harry and Ukadike anticipate that NNPCL will soon announce a price reduction to maintain competitiveness in the downstream sector.
“NNPCL has no choice but to lower petrol prices,” Gillis-Harry stated. “Consumers will naturally opt for the cheaper option.”
Ukadike echoed this sentiment, emphasizing that the ongoing price battle between Dangote Refinery and NNPCL makes a price cut inevitable.
Why Petrol Price Cuts Haven’t Lowered Transportation Costs
Despite the reductions in fuel prices, transportation and food costs remain unchanged. Gillis-Harry attributed this to the weak purchasing power of Nigerians, arguing that economic activities such as farming, fishing, and technology need to be strengthened to make a real impact.
“If you observe, transportation costs have not gone down despite the price reduction. That indicates weak consumer purchasing power,” he said.
However, Ukadike believes the impact will be felt gradually, eventually leading to lower transportation and commodity prices.
Concerns Over Frequent Fuel Price Adjustments
Gillis-Harry also raised concerns over the frequent fluctuations in petrol prices, warning that they could disrupt fuel supply security. He explained that marketers who purchase fuel at a higher price before a reduction often face financial losses.
“There’s still a lot of fuel in circulation that was bought at the old price. Marketers cannot sell below cost—it’s impossible to buy at N970 and sell at a loss,” he stated.
The ongoing price competition between NNPCL and Dangote Refinery has driven fuel prices downward, continuing a trend observed in late 2024.
