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NNPCL Reduces Petrol Price to N860 per Litre Amid Market Competition

The Nigerian National Petroleum Company Limited (NNPCL) has reduced its petrol pump price to N860 per litre, aligning with the price set by the Dangote Petroleum Refinery at MRS filling stations in Lagos. This price adjustment, observed on Monday, marks a significant reduction from the N945 per litre previously charged at NNPCL outlets.

Although NNPC Retail has not officially announced the change, independent marketers have confirmed the development. The National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, stated that while the new price has not yet been reflected on the company’s portal, the process is underway. Similarly, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), acknowledged the price cut but noted that further details are still being reviewed.

This move follows Dangote Refinery’s decision last week to reduce its ex-depot petrol price from N890 to N825 per litre, prompting NNPCL to adjust its pricing strategy. Before the Dangote refinery’s entry into the market, NNPCL played a dominant role in setting fuel prices in Nigeria. However, Dangote’s increasing influence in the downstream sector has introduced a new level of competition.

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Reports indicate that queues at NNPCL stations have significantly reduced, as consumers prefer Dangote’s petrol, which is believed to offer better fuel efficiency. The Energy Intelligence Report has also highlighted how Dangote’s 650,000 barrels-per-day refinery has disrupted NNPCL’s previous monopoly over refining and product distribution.

Meanwhile, petrol prices vary across different locations. In Abuja, NNPCL outlets adjusted prices to N880 per litre, down from N965 per litre last week. However, independent marketers are struggling to keep up, with stations along Airport Road, Jabi, and Wuse maintaining higher prices. Some outlets, like A.A Rano and Shema, have slightly reduced their rates, while others remain unchanged.

Fashola welcomed the price competition but cautioned that it should not be used as a tactic to eliminate competitors. He expressed hope that the price war would continue benefiting Nigerians and help reduce economic hardship.

As Dangote continues to set new price benchmarks, the NNPC has also confirmed that it is still purchasing petrol from the Dangote refinery for its Lagos stations. The company has not imported petrol this year, but officials say imports may resume if needed.

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