The Nigerian National Petroleum Company Limited (NNPC) has reduced the pump price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja, causing concern among petroleum marketers who say they are incurring significant losses.
Previously sold at N925 in Lagos and N950 in Abuja, the revised prices took effect on Easter Monday, with some NNPC retail stations adjusting accordingly. However, others continue selling at the old rate due to existing stock.
The price cut follows a recent move by the Dangote refinery, which slashed its ex-depot price from N865 to N835 per litre. Depending on the region, it also instructed partner outlets like MRS, Heyden, and Ardova to sell petrol between N890 and N920, further intensifying competition in the sector.
Hammed Fashola, National Vice President of the Independent Marketers Association of Nigeria, confirmed the new pricing directive and said independent marketers were struggling to sell off old stock without incurring major losses.
“The reduction is good for consumers, but we are bearing the financial brunt. That’s the bitter truth,” Fashola stated, noting that deregulation has created price fluctuations that challenge marketers’ sustainability.
He declined to speculate on further price drops, citing volatile crude oil prices and exchange rate instability as key factors that influence fuel costs.
The recent NNPC and Dangote price cuts come after the Federal Government approved the continued use of the naira-for-crude oil deal, affecting the dynamics of the domestic fuel supply chain.
