Fuel Price Competition Good for Consumers — NNPC Assures Nigerians
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, has assured Nigerians that the ongoing fuel price competition in the downstream petroleum sector will ultimately benefit consumers.
Speaking after briefing President Bola Tinubu in Lagos, Ojulari described the recent market tensions as a natural part of Nigeria’s shift from total import dependence to domestic refining.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. The market will stabilise over time, even though some tension is expected during this major transition,” Ojulari explained.
The comments come amid a sharp decline in petrol prices, which have dropped from over N1,200 per litre in November 2024 to as low as N739 per litre in December 2025 at some retail outlets.
The price reductions were largely driven by competition between Dangote Refinery, NNPC, and independent marketers, reflecting the market adjustments following increased domestic production capacity.
Fuel Price Competition Good for Consumers — Market Dynamics Explained
Ojulari emphasised that under the Petroleum Industry Act (PIA), NNPC is no longer responsible for setting or regulating petroleum product prices.
“The PIA separated regulation from business operations. The NMDPRA now oversees downstream regulation, while NUPRC handles upstream activities. NNPC operates purely as a commercial entity, competing profitably in the market,” he stated.
This structural change has required NNPC to raise funds independently, without federation allocations.
“We now operate like any other business, generating our own revenue to sustain operations,” Ojulari said, noting that competition in the market has become the main driver of price adjustments.
The market has been particularly volatile since Dangote Refinery, Africa’s largest single-train refinery with a capacity of 650,000 barrels per day, began producing petrol locally in September 2024.
The National Bureau of Statistics reports that the average retail price of Premium Motor Spirit fell by N153 per litre from November 2024 to November 2025, due to improved supply and intensified competition.
The price war accelerated in December 2025 when Dangote cut its ex-depot price from N970 to N699 per litre.
MRS filling stations, Dangote’s retail partner, sold petrol at N739 per litre nationwide, prompting NNPC retail outlets to reduce prices to between N825 and N840 per litre. Independent marketers followed suit, with some pricing petrol as low as N865 per litre.
Fuel Price Competition Good for Consumers — NNPC’s Role in Market Stability
Ojulari described NNPC as the “supplier of last resort,” collaborating with all key downstream players, including Dangote Refinery, to ensure adequate product availability.
“Our focus is to increase production. The more production we have, the greater flexibility downstream players will enjoy,” he said.
The GCEO acknowledged that simultaneous operations of major refineries, including NNPC’s rehabilitated facilities and Dangote Refinery, have disrupted market equilibrium.
“With such large-scale refineries now operating domestically, market dynamics will naturally experience tension. The key is ensuring these forces stabilise over time for mutual benefit,” he added.
He stressed that the NMDPRA will manage market competitiveness issues. “Competitiveness is not easy, and these early stages involve natural tensions between willing buyers and sellers,” Ojulari said.
Fuel Price Competition Good for Consumers — Domestic Refining Impact
Before Dangote’s entry, Nigeria relied almost entirely on imported fuel despite being Africa’s largest oil producer.
NNPC previously monopolised imports under a heavily subsidised regime, which ended after fuel subsidy removal in May 2023, causing pump prices to soar from around N195 to over N1,030 per litre by October 2024.
Ojulari briefed President Tinubu on NNPC’s production achievements in 2025, noting oil output rose from 1.5 million barrels per day to over 1.7 million barrels per day.
Gas production increased from 6.5 billion standard cubic feet to over seven billion daily.
The company aims to reach 1.8 million barrels per day in 2026, moving toward the President’s target of two million barrels per day by 2027.
The GCEO also reported the completion of the main line of the 614-kilometer Ajaokuta-Kaduna-Kano (AKK) gas pipeline, including the crossing of the River Niger.
The pipeline, expected to be commissioned in early 2026, will supply northern Nigeria with gas for industrialisation, fertilizer plants, and power generation.
Fuel Price Competition Good for Consumers — Outlook for Nigerians
NNPC’s ongoing focus on boosting domestic refining and production is expected to create a more competitive petroleum market, with long-term benefits for consumers.
Price adjustments, while occasionally abrupt, are seen as necessary for market efficiency and sustainable supply.
Ojulari concluded that Nigerians stand to gain from improved domestic refining and competition.
“Ultimately, consumers will be the beneficiaries. A competitive market ensures more stable, affordable, and accessible fuel supply across the country,” he said.
