On Saturday, the Nigerian National Petroleum Company (NNPC) Limited implemented a new, lower pump price for Premium Motor Spirit (PMS), reducing the rate to N910 per litre at its filling stations. This marks a N35 cut from the previous price of N945 per litre.
The adjustment took effect at NNPC retail outlets across Abuja, including prominent locations along the Kubwa Expressway at Zone 6, Wuse Zone 4, and other busy districts.
This move by the state-owned oil giant aligns with broader price reductions in Nigeria’s downstream market in response to easing global crude oil prices. Just days earlier, the Dangote Petroleum Refinery announced its own price cut at the wholesale level. The company lowered its ex-depot price—the rate charged to marketers— from N880 to N840 per litre effective June 30.
Confirming the change, Dangote Group’s spokesperson Anthony Chiejina said, “PMS price has been reduced from N880 to N840 per litre effective 30th June.”
Drivers of the Recent Price Reductions
The wave of price cuts has been attributed in part to recent declines in global crude oil prices, following a period of sharp volatility. International oil markets had been on edge due to heightened geopolitical tensions in the Middle East, notably the Israel-Iran conflict. Concerns deepened after U.S. President Donald Trump ordered the bombing of three Iranian nuclear facilities, briefly pushing prices higher before they corrected downward in subsequent trading.
As crude prices softened, refiners and marketers in Nigeria have adjusted their prices to reflect the reduced cost of imported or refined fuel, aiming to stabilise local markets and ease the burden on consumers.
Broader Market Impact in Nigeria
The NNPC’s price cut also coincides with moves by independent marketers to reduce their pump rates in key cities. In Abuja, retail fuel prices dropped to between N930 and N940 per litre, down from recent highs ranging from N945 to N975. Lagos residents likewise saw relief at the pump, with average prices falling to around N890 per litre from previous levels near N925.
These changes come at a time when fuel affordability remains a major concern for households and businesses, especially given the inflationary pressures that followed the government’s 2023 removal of the longstanding fuel subsidy. While the current reductions offer short-term relief, market analysts caution that pump prices in Nigeria remain highly sensitive to global crude trends, exchange rates, and domestic supply challenges.
As the country continues efforts to liberalise its downstream sector and encourage local refining capacity, including the much-watched Dangote Refinery project, industry observers will be watching closely to see whether the recent trend of price moderation can be sustained in the months ahead.