The recent operation of the Port Harcourt and Warri refineries is set to transform Nigeria’s downstream petroleum sector, driving healthy competition and better prices for consumers. This development is already having an impact, with the Nigerian National Petroleum Company Ltd (NNPC) and Dangote Refinery reducing their prices in the past three weeks.
According to Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), having multiple refineries in operation provides a variety of sources for petroleum products, breaking the monopoly and creating room for price competition. He expressed optimism that petrol prices could drop below ₦500 per litre by 2025 as more refineries add to the supply.
Ukadike also highlighted the benefits of the Federal Government’s foreign exchange policy, noting that with the dollar now trading below ₦1,800, further reductions in petrol prices are likely. As Nigeria reduces its reliance on imported petroleum products, the country saves foreign exchange, which helps stabilise prices.
Additionally, he revealed that more modular refineries are now preparing to include petrol in their production lines, driven by the increased demand and the deregulation of the downstream sector. This deregulation, he explained, fosters efficiency, fair competition, and better pricing for consumers.
Ukadike emphasised that the Federal Government’s naira-for-crude policy will also help control inflation and ease foreign exchange pressures, further shaping petrol prices in 2025.
Cheaper Fuel for Nigerians is Possible, Says PETROAN
Billy Harry, President of the Petroleum Products Retail Owners Association of Nigeria (PETROAN), echoed Ukadike’s optimism. He assured Nigerians that the operational refineries would lead to more affordable fuel options by 2025.
Harry pointed out recent price cuts, with NNPC lowering its ex-depot price from ₦1,045 to ₦899 per litre, translating to ₦925 per litre at the pumps. Similarly, Dangote Refinery reduced its ex-depot price from ₦970 to ₦899.50 per litre. He explained that with consistent availability of products, competition would further drive prices down.
Competition Will Benefit Nigerians
Iche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), noted that price reductions are a key benefit of a deregulated market. He stated that as more local refineries begin operations, competition among players will intensify, resulting in better prices, improved product quality, and incentives for consumers.
“Local refining brings advantages like price cuts and incentives for consumers. As the industry fully adapts to deregulation, Nigerians will enjoy the benefits,” Idoko said.
With these developments, industry experts agree that Nigeria is on track for a more efficient, competitive, and consumer-friendly petroleum market.