The Nigerian National Petroleum Company Limited (NNPCL) has slashed the pump price of Premium Motor Spirit (PMS) across key cities, marking one of its most significant adjustments in recent months.
On Thursday, Petroleumprice.ng correspondents observed that retail outlets in the Federal Capital Territory (FCT) reduced pump prices to ₦890 per litre, down from ₦945 representing a ₦55 decrease. In Lagos, the NNPCL station at Iwaya, Yaba adjusted to ₦865 per litre From ₦895 per litre, giving motorists a rare price break amid persistent cost pressures in the downstream market.
Dangote Refinery’s Price Move Sparks Market Shift
This change comes on the heels of Dangote Refinery’s ₦30 ex-depot price cut, which reduced rates from ₦850 to ₦820 per litre. The ex-depot price essentially the wholesale rate marketers pay directly influences pump prices, and the refinery’s adjustment has already triggered a chain reaction among major retailers.
Industry experts say Dangote’s move has created competitive pressure, encouraging NNPCL and other marketers to revise prices downward to maintain market share.
Global and Local Price Drivers
Falling crude oil benchmarks in the international market have also eased product landing costs, giving marketers more room to adjust retail rates. With both global and domestic factors aligning, Abuja and Lagos consumers are benefiting from a brief respite in fuel prices.
An NNPCL attendant at the Danziyal Plaza Mega Station in Abuja told newsmen:
“We got the directive this afternoon. Price dropped from ₦945 to ₦890. Customers are happy it’s been a while since they saw any reduction.”
In Lagos, drivers at the Iwaya, Yaba station confirmed the same sentiment, noting that the ₦865 per litre rate is the lowest they’ve seen in months.
Private Marketers Follow Suit
The ripple effect is evident. MRS Empire Energy also reduced its PMS price to ₦885 and ₦946 per litre, down from ₦910 and ₦955, signaling an increasingly competitive retail landscape.
Outlook for Consumers
With NNPCL controlling a substantial portion of Nigeria’s fuel retail network, its pricing decisions often set the tone for the broader market. If crude prices remain stable and refinery output strengthens, industry watchers believe further downward adjustments could be possible in the short term.
However, volatility in exchange rates, freight costs, and global oil dynamics could quickly reverse this trend.