December 20, 2025 l By Dalena Reporters
Abuja/Lagos, Nigeria — The Nigerian National Petroleum Company Limited (NNPCL) has implemented a significant reduction in the retail price of Premium Motor Spirit (PMS) commonly known as petrol bringing pump prices down to around ₦835 per litre in major cities, marking yet another downward adjustment in the downstream petroleum market.
NNPCL outlets in Abuja are now reportedly dispensing petrol at ₦835 per litre, while stations in Lagos including in Igando, Lekki, and Iwaya are selling at slightly higher rates between ₦838 and ₦840 per litre. This new pricing represents a substantial drop from earlier levels of about ₦915 per litre recorded prior to the latest reductions.
The latest move marks the third petrol price cut by NNPCL in December 2025, underscoring fast-evolving dynamics in Nigeria’s downstream petroleum sector. Industry sources attribute the price adjustment largely to intensified competition, particularly from private refineries and marketers who have continuously trimmed their own prices in recent weeks.
A source within the petroleum industry told reporters that the competitive pricing strategies adopted by the Dangote Refinery and other private marketers played a key role in prompting NNPCL’s decision to slash prices. CNBC-linked data indicates that the Dangote facility has repeatedly reduced ex-depot prices, exerting downward pressure on retail pump rates across the country.
Independent marketers have also responded to market forces. In Abuja, some marketers such as MRS, BOVAS, and AA Rano have reportedly adjusted their own pump prices, with rates ranging from approximately ₦739 to ₦865 per litre depending on location and supply conditions.
Analysts say that the evolving pricing landscape reflects a broader shift toward market-responsive pricing and a reduced dependence on imported refined products a trend driven by increasing domestic refining capacity and falling ex-depot fuel costs.
The downward revisions have been welcomed by motorists and consumers alike, particularly as Nigerians brace for increased travel demand over the festive season. Reduced fuel costs have the potential to ease transportation expenses for commuters, businesses, and transport operators across urban centres.
However, market analysts caution that petrol prices remain susceptible to fluctuations in global crude oil prices, foreign exchange rates, and local refinery output levels. These variables could influence future pricing dynamics, potentially leading to further adjustments in either direction.
The latest NNPCL price slash comes amid ongoing shifts within Nigeria’s oil market. Earlier in 2025, fuel prices had fluctuated with periodic reductions and adjustments by both NNPCL and private entities as downstream competition heated up following the commissioning of local refining capacity.
Industry observers say that sustained competition especially with private refineries entering the market and increasing supply could help stabilise fuel pricing over the long term. This emerging landscape stands in contrast to historical periods of heavy reliance on imported petrol and subsidy-driven pricing structures.
The Nigerian National Petroleum Company Limited’s decision to reduce petrol pump price to around ₦835 per litre its third cut this December highlights intensifying competition and shifting pricing dynamics in Nigeria’s downstream petroleum market. Consumers are benefiting from lower fuel costs, but industry watchers note that broader economic factors will continue to shape the trajectory of fuel prices nationwide.