By Ono Yima
The Nigerian National Petroleum Company Limited (NNPC Ltd) has reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to about ₦835 per litre in major cities across the country, marking the third downward price adjustment within the month amid intensifying competition in the downstream petroleum market.
The latest cut represents a decline from the previous average of about ₦915 per litre. Checks across selected NNPC retail outlets on Wednesday showed that stations in Lagos, including those in Igando, Lekki and Iwaya, were selling petrol at between ₦838 and ₦840 per litre, while outlets in Abuja dispensed the product at ₦835 per litre.
Industry analysts attribute the reduction to a combination of softer ex-depot prices, lower freight and insurance costs, and increased domestic supply, particularly from the Dangote Refinery, whose growing output has begun to alter pricing dynamics in the sector.
Independent marketers have also responded to the shifting market conditions. Retailers such as MRS, BOVAS and AA Rano were observed selling petrol in Abuja at prices ranging from about ₦739 to ₦865 per litre, depending on location and logistics costs. Similarly, private depots, including Dangote’s, have reportedly adjusted ex-depot prices to between ₦699 and ₦800 per litre, further exerting downward pressure on pump prices.
The successive price cuts signal a gradual transition towards market-responsive pricing in Nigeria’s downstream petroleum sector, reducing the country’s long-standing dependence on imported fuel. With increased local refining capacity coming on stream, competition among suppliers is beginning to replace the era of administered pricing.
Consumers have already started to feel short-term relief, particularly as travel demand rises during the festive season. However, energy experts caution that petrol prices remain vulnerable to external shocks, including fluctuations in global crude oil prices, movements in the foreign exchange market, and variations in domestic refinery output.
As competition deepens, stakeholders are calling for improved open access to supply infrastructure and distribution networks to ensure sustained efficiency and price moderation. Analysts note that if domestic refining continues to scale up and logistics bottlenecks are addressed, competitive pricing could become more durable, offering longer-term benefits to consumers and the broader economy.