The Nigerian National Petroleum Company (NNPC) Limited has once again reduced the price of Premium Motor Spirit (PMS), also known as petrol in Abuja from N935 to N910 per litre.
The price adjustment however, is yet to be implemented in Lagos and other cities across Nigeria.
Although the latest adjustment was said to provide customers with better value and consolidate Dangote’s leadership position in the domestic market, the cost of transportation in Abuja has remained stagnant, with some increases being recorded in some areas especially by motor cyclists, as residents continue to groan over high transportation costs.
As domestic competition intensifies, the latest price reduction by the NNPC followed the price slash by Dangote Petroleum Refinery on the gantry price of petrol to N825 per litre from N835 per litre.
Recall that the last reduction was in April, when the 650,000 barrels per day refinery lowered the gantry price to N835 per litre from N865 per litre.
According to Petroleumprice.ng, “With control over more than 50% of Nigeria’s fuel market, Dangote recently dropped its petrol price to ₦825 per litre. While the refinery hasn’t officially announced this, sources say it offers flexible deals to its bulk marketers, who now resell at ₦830 or slightly.
“This approach helps Dangote stay ahead of depot owners facing higher overheads.Dangote’s model has closed the price gap by ₦10 to ₦15, applying significant pressure on competitors.
“Nigeria’s fuel market is undergoing a transformation. Crude prices play a minimal role, while local strategies now dominate.”
