Just two days after hiking petrol prices, the Nigerian National Petroleum Company Limited (NNPCL) has reduced the cost of Premium Motor Spirit (PMS) to N900 per litre at its retail stations, down from N955 per litre, reflecting the volatile dynamics of Nigeria’s deregulated downstream oil market. The PUNCH confirmed on August 6, 2025, that NNPCL outlets along Kubwa Expressway and other locations in Abuja had implemented the N55 price cut, following a similar adjustment by some independent marketers.
The price reduction comes after NNPCL raised pump prices on August 4, 2025, to N955 per litre in Abuja and N915 per litre in Lagos, up from N865 per litre, citing rising ex-depot costs. An NNPCL station attendant in Kubwa, speaking anonymously, confirmed to The PUNCH, “We sold at N955 per litre on Tuesday, but it’s now N900.” Independent marketers like Ranoil and Empire Energy in Gwarinpa adjusted their prices to N955 and N950 per litre, respectively, down slightly from N971 and N970 earlier in the week. However, some stations, such as an MRS outlet in Abuja, maintained their rate at N885 per litre.
The price fluctuations stem from volatility in ex-depot prices, a key driver in the deregulated market. Data from petroleumprice.ng indicates that depots like Zone 4 and Mainland reduced ex-depot prices by N2 per litre to N860 and N862, respectively, a 0.23% drop. Major depots, including MENJ, Aiteo, Sahara, MRS Tincan, A.A. Rano, and Pinnacle, held steady at N860–N861 per litre. Industry stakeholders have criticized the inconsistent pricing, urging regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority to enhance oversight and ensure equitable pricing across the supply chain.
The price cut aligns with broader economic dynamics, including the Central Bank of Nigeria’s efforts to stabilize the naira (N1,565/$1 in the parallel market) through $4.1 billion in forex interventions in H1 2025. Despite a 67.12% surge in capital importation to $5.64 billion in Q1 2025, the downstream sector’s volatility underscores the need for consistent policies to balance market forces and consumer affordability amid 22.22% inflation in June.
