A swift move that highlights the volatility of Nigeria’s downstream petroleum sector, the Nigerian National Petroleum Company Limited (NNPC Ltd) has slashed the pump price of Premium Motor Spirit (PMS), popularly known as petrol, from ₦955 to ₦900 per litre at its retail outlets — barely 48 hours after a sharp price hike.
The sudden N55 reduction, observed on Wednesday across various NNPC stations in Abuja including Kubwa expressway, follows backlash over Monday’s pump price hike which saw petrol prices rise to ₦955 in the capital and ₦915 in Lagos. This pricing instability reflects ongoing turbulence in Nigeria’s deregulated fuel market, driven largely by fluctuating ex-depot rates at private terminals such as the Dangote Refinery and other independent suppliers.
Speaking anonymously, an attendant at an NNPC retail station in Kubwa confirmed the changes:
“On Tuesday, we sold at ₦955 per litre. Today, it’s ₦900.”
Independent marketers have also mirrored the trend, although with varying margins. Ranoil and Empire Energy stations in Gwarinpa, Abuja, adjusted their prices to ₦955 and ₦950 respectively, from highs of ₦971 earlier in the week. Meanwhile, some stations like MRS are reportedly maintaining the earlier rate of ₦885 per litre.
Industry insiders attribute the latest downward adjustment to declining ex-depot prices across select petroleum loading depots. According to real-time industry tracker petroleumprice.ng, depots such as Zone 4 and Mainland have cut prices slightly — from ₦862 to ₦860 per litre — reflecting a marginal 0.23% price drop.
Other prominent depots like MENJ, Sahara, MRS Tincan, A.A. Rano, and Pinnacle have maintained average selling prices between ₦860 and ₦861 per litre.
This marginal shift in depot-level pricing, experts say, can have disproportionate effects on retail pump prices given the layers of logistics, taxes, and profit margins added downstream. Stakeholders argue that the deregulated framework, while designed to promote competition and efficiency, has instead exposed consumers to erratic pricing models in the absence of robust regulatory oversight.
As price swings continue to dominate headlines, calls for stronger regulatory intervention have intensified. Market observers and civil society groups are urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to provide clearer frameworks for pricing transparency, especially in a fully deregulated economy where consumers are left at the mercy of market forces.
Dr. Adeyemi Oladele, an energy economist and public affairs analyst, noted:
“Deregulation doesn’t mean abdication of oversight. Regulatory bodies must ensure that market practices remain competitive, fair, and consumer-friendly.”
While NNPC has yet to release an official statement explaining the rationale for the price reversal, analysts believe the state-owned oil company may be responding to growing public discontent and the potential inflationary impact of continued fuel price hikes.
“This looks like a strategic rollback after market testing. The backlash was immediate, especially amid inflationary pressure and economic hardship,” said energy analyst Ifeoma Onwukwe.
For everyday Nigerians, this petrol price volatility spells more uncertainty — not just at the pump, but across transportation, food, and logistics sectors that heavily rely on petroleum-powered distribution networks.
The latest adjustment by NNPC may offer temporary relief, but the broader issues of pricing transparency, supply reliability, and infrastructural inefficiencies remain unresolved. Until Nigeria achieves local refining stability — particularly through consistent output from refineries like Dangote’s — pump prices are likely to remain unpredictable.
For now, the ₦900 price tag may offer slight breathing room, but the energy conversation in Nigeria is far from settled.