NNPC, Dangote’s New Fuel Costs Place Nigeria Among Countries With Cheapest Petrol Prices
- Nigeria has retained its position among countries with the cheapest petrol prices on the African continent
- Nigeria's position was further established with the recent announcement by Dangote refinery and NNPC
- Ex-depot and retail prices have dropped, with Dangote refinery and NNPC offering rates below N900
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
Nigeria has emerged among African countries with the lowest petrol prices, according to data published by Global Petrol Prices.
Global Petrol Price reports that as of Monday, April 21, Nigeria's petrol price is the 12th cheapest in the world and 5th in Africa.
Source: Getty Images
At the start of the year, Nigeria was ranked as the 27th cheapest country for petrol in the world. Recent price changes have seen Nigeria climb above 15 countries.
Changes in petrol prices in Nigeria
The data also revealed that globally, the average fuel price is currently $1.27 per litre, which is about N2,047.
In Nigeria, filling stations are selling fuel at prices ranging from N860 to N950, following changes in petrol prices by the Dangote Refinery and the Nigerian National Petroleum Company (NNPC) Limited.
Legit.ng reported that Dangote Petroleum Refinery reduced the official petrol prices for all its partner filling stations across the country.
The partners are Ardova Plc, MRS Oil Nigeria Plc, Technooil, Optima Energy, Hyde, and Heyden.
According to Dangote Refinery, the prices for its partner filling stations will be as follows:
- Lagos: N890 per litre
- South-West: N900 per litre
- North-West and North-Central: N910 per litre
- South-East, South-South and North-East: N920 per litre
Similarly, NNPC slashed its petrol pump price to N880 per litre on Monday, April 21, for its Lagos retail stations.
This new price represents a N30 reduction from the previous pump price of N910 per litre, and now means that NNPC sells petrol cheaper than Dangote's partners in Lagos.
While in Abuja, the pump price for petrol has reduced to N935 per litre from the previous price of N950 per litre.
Ranking of the 10 cheapest petrol prices in Africa
| Country | Petrol price in $ | Petrol price in N |
| Libya | $0.028 | N44.80 |
| Angola | $0.327 | N523.20 |
| Algeria | $0.348 | N556.80 |
| Egypt | $0.372 | N595.20 |
| Nigeria | $0.538 | N880.80 |
| Sudan | $0.700 | N1,120.00 |
| Tunisia | $0.848 | N1,356.80 |
| Ethiopia | $0.854 | N1,366.40 |
| Liberia | $0.871 | N1,393.60 |
| Ghana | $1.033 | N1,652.80 |
Nigeria’s petrol price less than neighbours'
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the current price of petrol in Nigeria is lower than what is charged in nearby West African countries.
This announcement comes even after Nigeria removed petrol subsidies, a move that caused fuel prices to rise across the country. On May 29, President Bola Tinubu officially ended the subsidy policy, leading to an increase in petrol costs.
Speaking at a State House briefing on Tuesday, Farouk Ahmed, the CEO of NMDPRA, said petrol now sells for around N950 per litre in Nigeria.
He compared this to prices in neighbouring countries: petrol costs N2,156 per litre in Cameroon, N1,875 in Chad, and N1,167 in Niger. In Ghana, a litre sells for N1,581, while in Senegal it goes for as high as N2,540.
Ahmed explained that these prices were calculated based on the current exchange rate of the naira. He added that many of these countries either lack refineries or are landlocked, making transportation more expensive.
This, he said, is one reason why petrol costs more there and why smuggling across borders often happens.
Ahmed also noted that Nigeria’s daily petrol consumption has dropped from 66.9 million litres in May 2023 to about 49.8 million litres today.
Bellazir Energy to sell fuel
Ealier, Legit.ng reported that Bellazir Energy Ltd, an energy company, has announced its entry into Nigeria’s downstream petroleum sector.
The company, in a statement made available to journalists, said it aims to revolutionise fuel supply and distribution across the country. the
The company’s official unveiling, scheduled at the prestigious Radisson Blu Hotel, Victoria Island, Lagos, is expected to bring together industry leaders, key stakeholders, and government representatives.
The article has been updated with additional comments by head of business desk Victor Enengedi.
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Source: Legit.ng
