Marketers count losses as NNPC cuts petrol price to N880/litre
Posted by Titinaija on April 22, 2025
0
Petroleum marketers are reeling from financial setbacks after the Nigerian National Petroleum Company Limited (NNPCL) slashed the pump price of Premium Motor Spirit (PMS).
On Easter Monday, NNPCL retail stations in Lagos reduced petrol prices from N925 to N880 per litre, while outlets in Abuja adjusted from N950 to N935 per litre.
This price cut follows Dangote Refinery’s recent reduction of its ex-depot rate from N865 to N835 per litre. The $20 billion facility also directed its distribution partners MRS, Heyden, and Ardova to lower retail prices to N890 in Lagos, N900 across the South-West, N910 in the South-South, and N920 in the North-East.
With NNPC undercutting Dangote’s Lagos rate by N10, industry observers suggest a price war may be on the horizon between the two energy giants.
Some NNPC stations are still selling at the old rates, as they’ve been permitted to exhaust existing stock before implementing the new prices. Independent marketers are adopting the same approach.
Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the price adjustment and warned of significant financial losses.
“Yes, NNPC has reduced the price to N880 per litre in Lagos, and they’ve sent circulars to their stations,” Fashola said. “However, many outlets are still selling at N910 to clear old inventory.”
He acknowledged that while the price cut benefits consumers, marketers are taking a financial hit. “The reduction is good news for Nigerians, but we’re suffering the losses. That’s just the hard truth.”
Asked how marketers are managing, Fashola explained they’re forced to sell existing fuel stock at a loss to stay competitive. “We’re gradually lowering prices to minimize the impact and clear out old supplies before restocking at the new rates.”
Fashola refrained from making any forecasts on further price movements, noting that fuel pricing is tied to volatile global crude oil prices and exchange rates.
“It’s hard to say. If crude drops to $50 a barrel, it could have far-reaching consequences for government revenue, inflation, and the economy at large.”
The price adjustments come in the wake of the Federal Government’s directive to maintain the naira-for-crude oil exchange framework, prompting Dangote Refinery to rethink its pricing strategy.
READ ALSO 👇
[Music] Davido – Be There Still
Download Here
