NNPC Boss, Ojulari Speaks on Price War between Dangote, Marketers
- The GCEO of the NNPCL has said that petrol price competition will ultimately favour consumers
- Ojulari explained that market tension is expected during Nigeria’s shift to local refining
- He added that NNPCL no longer regulates prices under the Petroleum Industry Act
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr Bayo Ojulari, has said that the escalating price war between Dangote Refinery and marketers will favour consumers.
Ojulari gave the assurance on Sunday while speaking to journalists after briefing President Bola Tinubu in Lagos, PUNCH reported.
Source: Getty Images
He described the current market tensions as a natural outcome of Nigeria’s transition from heavy reliance on fuel imports to increased domestic refining.
According to him, competition is expected during such a transition, but the market will stabilise over time, with consumers emerging as the biggest beneficiaries.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. We need to keep in mind that the market will stabilise. There will be some tension because we are going through a major transition,” Ojulari said.
His comments come amid a sharp drop in petrol prices across the country, driven largely by competition between Dangote Refinery, NNPCL retail outlets and independent marketers.
Pump prices, which were above N1,200 per litre in November 2024, have fallen to as low as N739 per litre at some filling stations in December 2025.
PIA enables competition
Ojulari clarified that under the Petroleum Industry Act (PIA), NNPCL no longer sets prices or imposes strict regulation on pricing in the downstream sector.
He explained that the Act separated regulatory roles from commercial operations, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) overseeing downstream regulation and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handling upstream activities.
He added that based on the PIA, NNPCL is not a regulator but a commercial company that must compete profitably and raise financing like other businesses.
The management head of the nation’s oil firm added that the company no longer receives allocations from the federation account and must operate independently within a deregulated market environment.
Nigeria’s downstream sector has seen intensified competition since September 2024, following the commencement of petrol production by the 650,000-barrel-per-day Dangote Refinery.
Retail price of petrol falls
According to data from the National Bureau of Statistics, the average retail price of petrol fell by N153 per litre between November 2024 and November 2025.
The price war escalated in December 2025 when Dangote Refinery reduced its ex-depot price from N970 to N699 per litre.
This prompted MRS stations, Dangote’s retail partner, to sell at N739 per litre nationwide, while NNPCL outlets adjusted prices to between N825 and N840 per litre, depending on location.
Ojulari acknowledged that the presence of large refineries operating simultaneously has disrupted market equilibrium but described the situation as part of a necessary adjustment phase.
He said NNPCL remains the “supplier of last resort” and continues to work with all key players, including Dangote Refinery, to ensure adequate fuel supply. According to him, increased crude oil production will provide more flexibility for refineries and downstream operators.
Source: UGC
Ojulari briefs President Tinubu on performance
Ojulari also noted that he had briefed the president on NNPCL’s production performance, revealing that crude oil output has risen from about 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025.
Gas production, he added, has increased to more than seven billion standard cubic feet per day.
He said NNPCL is targeting at least 1.8 million barrels per day in 2026, as part of efforts to reach the federal government’s goal of two million barrels per day by 2027.
On infrastructure development, Ojulari disclosed that the main line of the Ajaokuta–Kaduna–Kano (AKK) gas pipeline has been completed, including the long-delayed River Niger crossing.
He said the 614-kilometre pipeline is expected to support industrialisation, power generation and fertiliser production in northern Nigeria when commissioned in early 2026.
Survival of the fittest as marketers take on Dangote Refinery
Legit.ng earlier reported that marketers in reaction to Dangote Refinery's price cut, also slashed petrol prices in their respective depots as each fights for a share of Nigeria’s downstream petroleum market.
The move by independent marketers seeks to upstage the refinery, as the facility intensifies nationwide and international fuel distribution
Experts have said the development is a by-product of a deregulated market where the fittest survive.
Source: Legit.ng
