- NNPC and independents slash pump prices below ₦875 benchmark
Nigeria’s fuel market has plunged into a fresh price war, as retail stations operated by the Nigerian National Petroleum Company (NNPC) and independent marketers have slashed petrol prices below the rate set by the Dangote Refinery.
As of 3 June 2025, pump prices across Lagos saw a sharp decline. Al-Moruf Filling Station in Igando is now dispensing petrol at ₦865 per litre, while MOJ and Eunice stations have matched or come close to this rate. NNPC Retail outlets have also adjusted their prices to ₦870 per litre—undercutting the ₦875 per litre charged at outlets supplied by Dangote.
In the upstream supply chain, depot prices have followed suit. AITEO depot has reduced the price of Premium Motor Spirit (PMS) to ₦826 per litre, giving independent resellers an edge by offering better margins than sourcing from Dangote’s supply lines.
Industry analysts say the development signals a significant realignment in Nigeria’s deregulated petroleum market. Despite the Dangote Refinery ramping up production and expanding supply, it appears rivals are using aggressive pricing to capture market share.
“This is more than just a price drop—it’s a power play,” one energy analyst told the BBC. “We’re seeing a clear shift where private marketers are now setting the tone in the market. If Dangote cannot match their pricing agility, its dominance may be short-lived.”
Dangote responds with US crude imports
In a counter-move, Dangote Refinery has lined up the importation of five million barrels of West Texas Intermediate (WTI) crude oil from the United States, scheduled for delivery in July.
The refinery, which boasts a processing capacity of 650,000 barrels per day, is reportedly securing 161,000 barrels daily from US suppliers in an attempt to boost output and potentially bring prices down further.
Meanwhile, some independent fuel retailers are reportedly banding together to survive the pricing squeeze—jointly purchasing as much as 40,000 litres at a time to lower overheads and stay competitive.
Market outlook: More turbulence ahead
With more fuel entering the market—particularly from international sources—experts warn that pump prices are likely to fluctuate in the coming weeks. The pricing tug-of-war could intensify, leading to further volatility for consumers and uncertainty for smaller market players.
The battle for market share, analysts say, will define the next phase of Nigeria’s fuel sector—testing both Dangote’s staying power and the resilience of independent operators in a newly liberalised market.
