The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N860 per litre. This marks a significant drop from the previous average price of N920 per litre and reflects ongoing fluctuations in global crude oil prices as well as a price war among oil marketers and independent petroleum dealers.
Effective Immediately
The new price, which took effect on Monday, March 3, 2025, is part of efforts to stabilize the market and provide relief to consumers. NNPCL also announced the participation of three partner off-takers in Lagos, with MRS selling petrol at N860 per litre, while AP and Heyden are offering the product at N865 per litre.
Dangote Refinery’s Influence
The price reduction follows last week’s announcement by Dangote Petroleum Refinery, which cut its ex-depot price of petrol from N890 to N825 per litre. This was the refinery’s second price reduction in February, signaling a competitive push to dominate the market and influence pricing trends.
Global and Local Factors
The adjustment in petrol prices is largely driven by fluctuations in global crude oil prices, which have seen a downward trend in recent weeks. Additionally, the competitive landscape among local oil marketers and refiners has intensified, leading to a price war aimed at attracting more customers.
What’s Next?
The reduction in petrol prices is expected to provide some relief to Nigerian consumers, who have been grappling with high fuel costs and their ripple effects on transportation and commodity prices. However, industry experts caution that the market remains volatile, and prices could change depending on global oil trends and local economic conditions.