Nigeria’s raging petrol price war will ultimately ease costs for consumers, the head of NNPCL has said, as competition reshapes the downstream oil market. The assurance comes amid sharp pump price cuts sparked by local refining and deregulation.
NNPCL Group Chief Executive Officer, Bayo Ojulari, spoke on Sunday after briefing President Bola Tinubu in Lagos. He described the current turbulence as a temporary phase following Nigeria’s shift from fuel imports to domestic production.
Ojulari said falling prices were a direct result of market competition, stressing that buyers always win in such conditions. Petrol prices, which exceeded N1,200 per litre in late 2024, have plunged to as low as N739 at some stations in December 2025.
The cuts have been driven largely by intense rivalry between Dangote Refinery, NNPCL retail outlets and independent marketers. Dangote’s decision to slash its ex-depot price from N970 to N699 per litre this month forced competitors to quickly respond or lose customers.
MRS stations, Dangote’s retail partner, dropped prices nationwide to N739 per litre. NNPCL outlets followed with reductions to between N825 and N840, while independent marketers adjusted prices across major cities.
Ojulari clarified that NNPCL no longer controls pricing or regulation under the Petroleum Industry Act. He said regulatory duties now rest with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the upstream regulator, NUPRC.
He explained that NNPCL now operates strictly as a commercial company, competing for market share without federation funding. The firm must raise its own finance and remain profitable like any private business.
According to industry data, the average petrol price fell by over N150 per litre between November 2024 and November 2025. Analysts say supply improvements and over 20 price adjustments by Dangote in 2025 alone intensified the battle.
The rapid drops have hurt marketers who bought fuel at higher prices, forcing them to sell at losses or face shrinking patronage. Industry leaders say price competition now dictates customer loyalty.
Ojulari said NNPCL is acting as a “supplier of last resort,” working with all players to ensure steady supply. He acknowledged that the entry of Africa’s largest refinery and the revival of local plants disrupted the market but insisted stability would follow.
He also revealed Nigeria’s oil production has climbed above 1.7 million barrels per day, with gas output exceeding 7 billion cubic feet daily. NNPCL aims to hit 1.8 million barrels per day in 2026 as infrastructure projects, including the AKK gas pipeline, near completion.
