Fuel Price War Deepens: NNPC, Depot Owners Slash Rates to Outsell Dangote Refinery
- The Nigerian National Petroleum Company Limited (NNPC) has slashed its petrol prices for the second time in a week
- The national oil company’s latest price cut came as depot owners began to drop prices to deepen rivalry with Dangote Refinery
- NNPC’s latest price cut shows that the state oil firm still sells petrol at a higher rate than Dangote Refinery partner stations
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has slashed its petrol price for the second time in a week.
Findings showed on Wednesday, July 23, 2025, that the national oil firm adjusted its PMS price to N890 per litre from N895.
Source: Getty Images
NNPC cuts petrol prices nationwide
The recent price cut represents an N5 per litre reduction relative to its earlier cost of N895.
According to reports, NNPC retail stations along Kubwa Expressway, Gwarimpa, Wuse Zone 4, and other locations in Abuja, have also reduced their pumps to the new price.
The new price slash comes after a week when the state oil firm lowered its PMS prices to drive competition.
Depot owners slash fuel prices
Findings also showed that while NNPC sells petrol at N890 per litre, Dangote Refinery marketers, such as AP, MRS, Optima, and others, sell at N885.
A prior report by Legit.ng disclosed that depot owners in Lagos have slashed petrol prices, intensifying pressure on the Dangote Refinery, which is already grappling with dwindling buyer interest.
On Tuesday, July 22, 2025, despite quoting ₦820.50 per litre for Premium Motor Spirit (PMS), the refinery experienced minimal activity.
Petroleum marketers are now adopting a cautious approach, holding off purchases amid strong indications that prices may dip further in the coming days.
“Trading was thin. Marketers came, saw the price, and left. They’re waiting,” a refinery insider said.
Lagos depots undercut Dangote’s ex-depot rate
Fresh pricing data from the Daily Oil and Gas Market Intelligence Report (July 22, 2025) reveals that several Lagos depots are now offering petrol at rates equal to or slightly below Dangote’s.
While the price differences may seem marginal, they carry significant weight for independent marketers operating on thin margins and bearing heavy logistical costs.
This psychological edge has tilted trader interest toward smaller, more competitive depots.
Price-sensitive buyers pause major lifting operations
Despite being Africa’s largest refinery, the Dangote facility witnessed sparse movement at its jetty on Tuesday.
Traders who visited largely refrained from lifting product after reviewing pricing.
“No one wants to buy high today and get undercut tomorrow,” one downstream operator said.
Expectations had been high that Dangote would lower prices in response to growing stockpiles and rising inland supply — but no such cut came.
Nigeria’s downstream market is reshaping
This slowdown signals a major shift: deregulation is forcing refineries and depots to compete on price and efficiency as buyers become more selective and responsive to market data.
Source: Getty Images
Marketers are increasingly tracking live price fluctuations and supply patterns, indicating a shift toward data-driven strategies that reshape both the timing and sources of bulk purchases.
“Volume lifting decisions are now based on timing, pricing, and how quickly we can recover at the pump,” one depot-level marketer noted.
NNPCL posts N905bn profit
Legit.ng earlier reported that Nigeria’s state-owned oil company, the NNPC, has reported a ₦905 billion post-tax profit for June 2025, according to its newly released monthly financial and operational report.
The impressive earnings come on the back of rising oil and gas production, positioning NNPCL as a major contributor to Nigeria’s revenue amid ongoing economic pressures.
Crude oil and condensate production reached an average of 1.68 million barrels per day (mbpd) in June, the highest level recorded since January 2025.
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Source: Legit.ng
