The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has lauded the recent petrol price cuts by both the Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC). PETROAN, led by Dr. Billy Gillis-Harry, expressed optimism that the price reductions will help curb inflation and provide much-needed relief to Nigerians struggling with rising living costs.
NNPC reduced its petrol price from ₦920 to ₦875 per litre, with Lagos filling stations seeing a further drop to ₦860 per litre. This move follows a similar price reduction by Dangote Refinery, which has intensified the ongoing price competition between the refinery and NNPC’s Warri facility. The rivalry has led to greater affordability in the downstream market, which had been dominated by the NNPC monopoly for years, especially in the absence of local refining.
PETROAN sees the price cuts as a positive development for Nigerian consumers. Gillis-Harry commented, “This price reduction will be a huge relief to many Nigerians struggling to make ends meet.” He added that the reduction would not only ease financial burdens but also decrease transportation costs, which would, in turn, lower food prices, helping Nigerians access affordable food.
Impact of the Price Cuts on the Downstream Market
The ongoing price war between NNPC and Dangote Refinery is seen as a victory for the downstream sector, which has long been under the NNPC monopoly. However, there are concerns that if Dangote Refinery eventually takes over the retail segment, a new monopoly could emerge.
NNPC’s price reduction follows Dangote Refinery’s decision to announce MRS, AP, and Heyden as its off-takers, ensuring the refinery can control the price reductions nationwide. PETROAN has praised NNPC for its proactive approach to supporting Nigerian citizens and alleviating financial strain.
Dangote Refinery Refund Initiative: A Relief for Retailers
PETROAN also commended Dangote Refinery for its initiative to refund ₦65 to retail outlet owners affected by the price reduction. This move follows the refinery’s decision to lower its gantry price from ₦890 to ₦825 per litre. Retailers who purchased petrol at the higher rates are eligible for a refund on over 200,000 metric tonnes of petrol. The refund will help mitigate losses incurred by retail outlet owners.
“This refund initiative demonstrates Dangote Refinery’s commitment to fair pricing and consumer welfare,” said Gillis-Harry. The refund will ease the financial burden on retailers and positively impact the entire downstream industry.
OPEC Production Surge: What It Means for Nigeria
Meanwhile, crude production by the Organisation of Petroleum Exporting Countries (OPEC) rose to the highest level in more than a year, according to Bloomberg. The increase, driven by Iraq, Venezuela, and the UAE, brought OPEC’s total output to 27.35 million barrels per day in February, a 240,000 barrels-per-day rise compared to January 2025.
Iraq’s production recovered from a fire at its Rumaila oil field, while Venezuela raised exports ahead of tighter U.S. restrictions. The UAE also boosted output, reaching 3.3 million barrels per day. However, OPEC+ delegates, led by Saudi Arabia and Russia, are considering delaying their planned monthly production increases, which were initially slated for April.
Despite these supply increases, oil prices have fallen over 10% since mid-January, trading near $73 per barrel due to weak consumption in China and growing output from non-OPEC countries like the U.S., Canada, and Guyana.
Looking Forward
As Nigeria’s oil sector faces new dynamics due to competition between Dangote Refinery and NNPC, PETROAN remains hopeful that these developments will lead to more affordable fuel for Nigerians. The price cuts, along with the refund initiative, are viewed as a win for consumers, especially in the face of inflation.
The government’s continued efforts to ensure transparency and fair pricing in the oil and gas sector will likely yield long-term benefits for Nigeria’s economy, particularly in easing the cost of living for everyday citizens.
