The Nigerian fuel market is experiencing a striking disparity as petrol marketers retain old prices, even after a significant gantry price reduction announced by the Dangote Refinery.
While the Nigerian National Petroleum Company Limited (NNPCL) has lowered its pump price by N95 per litre to N1,165, most independent petrol retailers across major cities continue to sell at higher rates reflecting previous gantry levels.
This price divergence has emerged amidst the federal government’s decision to suspend PMS import licences for a second consecutive month.
Under the Petroleum Industry Act (PIA), the importation of petroleum products is permitted only when domestic production falls short, reinforcing reliance on local refining capacity.
Petrol marketers retain old prices despite Dangote’s gantry cut
Leadership checks revealed that NNPC stations in Abuja implemented the revised price on Wednesday, with outlets in Jabi, Lifecamp, Wuse Zone 4, and Zone 5 selling petrol at N1,165 per litre, down from the previous N1,260.
Diesel prices were also adjusted, with sales recorded at N1,535 per litre. Other notable station adjustments included NIPCO at N1,195, AP at N1,200, and AA Rano at N1,223 per litre.
In Lagos, Ibadan and Ogun States, however, the story was markedly different. Despite Dangote Refinery’s gantry reduction from N1,175 to N1,075 per litre, many filling stations maintained elevated prices, including N1,230 at Iwaya, N1,240 at MRS along Lagos-Abeokuta Expressway, and N1,250 along Atan-Idiroko Road.
Ardova stations in Ota and on the Airport Access Road recorded sales ranging between N1,134 and N1,180 per litre, while Conoil in Ikeja sold petrol at N1,138 per litre.
According to an anonymous manager at MRS, their outlet would implement a modest N100 reduction to N1,167 per litre from Thursday, illustrating the lag in downstream compliance despite the gantry cut.
Supply constraints and local refining drive pricing dynamics
The persistent higher pump prices coincide with government efforts to prioritise local production.
The NMDPRA and the Central Organisation for the Regulation of the Nigerian Petroleum Industry (CORAN) confirmed that no PMS import licences were issued for February, and none had been approved for March at the time of filing.
These measures aim to encourage domestic refining, particularly the output of Dangote Refinery, which supplied 36.5 million litres of petrol and 8 million litres of diesel in February, a volume deemed sufficient to meet national demand.
CORAN spokesperson Eche Idoko welcomed the policy, stating, “For us, anything that protects local production is a good move. The challenge now is to sustain the momentum.”
The strategy reflects a broader policy win for local refiners, who have previously taken legal action to halt imports that compete with domestic output.
Demand softens as consumer behaviour shifts
The retention of high pump prices appears to have moderated consumer demand. Observers noted a decline in sales, with petrol consumption falling from 60.2 million litres in January to 56.9 million litres in February 2026.
Station attendants reported shorter queues and slower turnover, attributing the trend to reduced purchasing power and price sensitivity among motorists.
Despite the lower gantry price, market behaviour suggests that independent marketers are prioritising profit margins while navigating supply uncertainties.
This cautious pricing approach is influenced by regional and global crude oil market volatility, with Brent crude hovering at $91.76 per barrel and West Texas Intermediate at $86.86, driven by geopolitical tensions in the Middle East, including US and Israeli military actions in Iran.
Implications for Nigeria’s energy sector
The divergence between official NNPC pricing and retail station sales underscores ongoing challenges in the country’s downstream sector. Analysts suggest that sustained price discrepancies could lead to uneven fuel distribution, further incentivising compliance gaps and informal trading.
Petrol marketers retaining old prices could also slow the benefits of government policies designed to encourage domestic refining, particularly when coupled with restrictions on PMS imports. For consumers, this translates to limited relief at the pumps despite reductions in gantry pricing.
The market remains closely monitored as stakeholders—including federal regulators, refiners, and marketers—navigate the interplay of local production incentives, supply constraints, and international crude price fluctuations.
