Nigerian Petroleum Company NNPCL Slashes Fuel Pump Price To ₦835/Litre

The Nigerian National Petroleum Company Limited (NNPCL) has officially reduced the pump price of Premium Motor Spirit (PMS) to approximately ₦835 per litre in major urban centers. This adjustment marks a notable decrease from the previous rate of ₦915 per litre, with specific retail outlets in Lagos now selling fuel between ₦838 and ₦840 per litre. In Abuja, the price has stabilized at ₦835 per litre, providing immediate financial relief to motorists and transport operators as the festive season approaches.

This price reduction is a strategic reaction to the aggressive market entry of the Dangote Petroleum Refinery and other private sector players. On December 12, 2025, the Dangote Refinery implemented its 20th price adjustment of the year, lowering its ex-depot gantry rate from ₦828 to ₦699 per litre. This move has forced a competitive shift across the downstream sector, as NNPCL and independent marketers like MRS, BOVAS, and AA Rano recalibrate their rates to maintain their respective market shares.

The current market landscape shows a significant downward trend in fuel costs across various distribution points in the country. Independent marketers in the Federal Capital Territory have adjusted their pump prices to range between ₦739 and ₦865 per litre, while private depots have lowered their ex-depot prices to between ₦699 and ₦800 per litre. These figures indicate that domestic refining capacity is beginning to exert a tangible influence on the local economy by lowering the costs associated with fuel storage and distribution.

Industry analysts attribute this shift to a transition toward a market-responsive pricing model that reduces Nigeria’s long-standing dependence on imported petroleum products. By sourcing fuel from local refineries, the supply chain becomes more efficient, allowing for price cuts that reflect actual production costs rather than import-heavy logistics. This competitive environment is reshaping the petroleum industry, fostering a landscape where pricing is determined by supply and demand rather than fixed administrative mandates.

While the current price drop is a positive development for consumers, the stability of these rates remains tied to external economic factors. Future pump prices will continue to be influenced by global crude oil valuations, the exchange rate of the Naira, and the consistent output levels of local refineries. To ensure these lower costs remain sustainable, industry observers are calling for increased transparency in pricing and open access to distribution networks to maintain the downward pressure on fuel expenses