Petroleum product marketers are raising alarm over mounting losses following a fresh round of petrol price reductions by the Nigerian National Petroleum Company Limited (NNPC), with Premium Motor Spirit (PMS) now selling at N880 per litre in Lagos and N935 in Abuja.
The cut, implemented on Easter Monday, saw NNPC retail outlets drop their pump prices from N925 and N950 respectively. This move came shortly after the $20 billion Dangote Refinery slashed its own ex-depot price from N865 to N835 per litre, prompting partners like MRS, Heyden, and Ardova to peg their pump prices at N890 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
The development signals a brewing price war, with NNPC undercutting Dangote’s Lagos rate by N10 per litre. Paparazzi Online observed that while some NNPC stations have updated their prices, others are still dispensing fuel at the old rate.
“NNPC has confirmed the price reduction,” said Hammed Fashola, National Vice President of the Independent Marketers Association of Nigeria, in an interview. “It is now N880 per litre in Lagos. They sent messages to their retail outlets. Some have already changed prices, while others with old stock are selling at the previous rate.”
Fashola emphasized the financial burden the new prices have placed on operators.
“We are losing money. That’s just the truth. That’s the bitter truth,” he said. “The reduction benefits the masses, no doubt. But for us marketers, it’s been tough. We are bearing the brunt.”
According to him, the ongoing deregulation of the downstream sector allows such price swings, but he stressed that the unpredictability complicates business planning.
“What we can do is try to sell off our old stock quickly—at a loss if we must—so we can restock at the new price and stay in business,” he added.
Asked whether Nigerians can expect prices to fall further to around N800 or even N700 per litre, Fashola declined to speculate.
“I don’t want to predict that. Crude oil prices and exchange rates are the major factors here. If crude drops to $50 per barrel, it has implications—on government revenue, on inflation. So, I’d rather not guess,” he said.
The latest pricing shifts follow a federal directive allowing the continuation of the naira-for-crude deal, a move that some analysts say could further stabilize domestic fuel supply. However, for marketers on the ground, the battle now is about survival in an increasingly volatile market.
