In a welcome development for motorists, petroleum marketers across Nigeria have begun reducing the pump price of Premium Motor Spirit (PMS), commonly known as petrol, in a bid to attract patronage and remain competitive in the liberalized oil and gas market.
A price review observed in Abuja on Friday showed several filling stations had lowered their fuel prices by at least ₦10 per litre. Notable players such as Ranoil, Shafa, and AA Rano now sell PMS at ₦900 per litre, down from the previous ₦910 rate. The reduction is seen as a ripple effect of the broader market liberalization that now allows prices to be determined by supply and demand rather than fixed government regulation.
Market Forces Take Over Fuel Pricing
Speaking on the trend, Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the ongoing price adjustment underscores the benefits of deregulating the downstream sector.
“The era where the government determines the price of PMS is gone. Price modulation is no longer done by the government but by demand and supply,” Ukadike stated.
Ukadike had earlier projected that petrol prices could further dip to ₦800 per litre as supply increases and local refining capacity improves, particularly with the ongoing operations of the Dangote Refinery and steady imports by private sector players.
Dangote Refinery and NNPC Lead the Competition
Currently, the Nigerian National Petroleum Company Limited (NNPCL) and major marketers aligned with the Dangote Refinery—such as MRS, AP Ardova, Optima, and Bovas—are dispensing petrol at rates between ₦875 and ₦895 per litre in major urban centres like Lagos and Abuja.
Insiders within the oil and gas sector have hinted that further price reductions may be on the horizon after the Eid-Al-Adha holiday, as key players like NNPCL and Dangote Refinery strategize to sustain market competitiveness.
“Once the current festive logistics settle and more refined products become available, we may see another round of adjustments,” a senior executive with a Lagos-based oil distribution company told Africa Live News. “The goal is to retain market share in an environment where consumers are increasingly price-conscious.”
Consumers Welcome Relief, But Call for More
For everyday Nigerians grappling with rising living costs, the fuel price cut comes as a modest relief. However, many still believe more needs to be done to make petrol more affordable across all states, especially in rural areas where prices remain above ₦1,000 per litre due to logistics and distribution challenges.
“I just bought petrol for ₦890 in Abuja, which is better than ₦950 last week,” said Musa Ibrahim, a ride-hailing driver. “But for this to really help us, prices need to come down more and stay consistent. Otherwise, it’s hard to plan daily income.”
Others, especially commercial drivers and transport operators, expressed hope that lower fuel prices would soon translate into reduced transport fares. “Fuel price affects everything—from food to school fees. Any drop helps, but we want this to continue, not just during festive seasons,” said Ngozi Okafor, a trader in Lagos.
Liberalisation Bringing Gradual Gains
Industry experts have long argued that deregulating the petroleum sector would allow for more efficiency, competition, and eventual price stabilization. Though the initial phase of liberalization came with sharp price hikes following the removal of fuel subsidies in 2023, the current price cuts reflect a potential long-term shift toward a more balanced and consumer-responsive market.
“What we are witnessing is market self-regulation,” explained energy analyst Ayodele Ogundele. “With more competition and supply from local refiners like Dangote and other modular refineries coming online, we expect prices to continue adjusting downward. The key is consistency in supply and transparency in pricing.”
He added that the government’s role moving forward should focus on creating an enabling environment, including improved storage infrastructure, reliable power for refineries, and a supportive fiscal policy for the oil and gas sector.
Regional Price Variations Persist
Despite the recent reductions in Abuja and Lagos, fuel prices remain higher in some parts of Nigeria, especially in the North East and rural communities, where transportation costs and distribution delays lead to increased pump prices. In areas like Maiduguri and Sokoto, motorists report paying between ₦1,000 and ₦1,050 per litre.
IPMAN officials acknowledge these disparities and attribute them to poor road infrastructure, high diesel costs for fuel transportation, and security concerns affecting supply routes.
“We are working on addressing these challenges with government collaboration,” Ukadike noted. “As more local refining capacity becomes operational, especially from smaller refineries in the Niger Delta, we hope to see price uniformity across all zones.”
Looking Ahead: More Reductions Expected Post-Eid
According to market watchers, the Eid-Al-Adha holiday season could temporarily slow supply chains, but a rebound is expected immediately after, possibly accompanied by fresh price cuts from major suppliers like Dangote Refinery and NNPCL.
“There’s a silent price war going on,” said an executive at a leading Lagos-based petroleum logistics firm. “Everyone wants to be seen as the most affordable and reliable. For the first time in a long while, customers are starting to have options—that’s the power of market reform.”
With the government staying away from price-fixing and allowing competition to shape the industry, analysts say Nigeria’s petroleum market is gradually evolving into a more dynamic and consumer-friendly space.
Final Word
While the journey toward stable and affordable fuel prices is far from over, recent pump price reductions offer a glimmer of hope for millions of Nigerians. The entry of local refining giants like Dangote and ongoing competition among marketers may usher in a new era where the price at the pump is driven by market realities, not subsidy politics.
As stakeholders prepare for post-holiday demand and increased distribution, all eyes will be on whether this positive trend can be sustained and extended across the country—especially in underserved regions.
