The Nigerian National Petroleum Company Limited’s (NNPCL) Group Chief Executive Officer, Bayo Ojulari, has stated that Nigerians are the primary beneficiaries of the current fuel price reductions. This development is attributed to increased competition in the downstream oil sector. Ojulari made these remarks after briefing President Bola Tinubu in Lagos, describing the fluctuations in petrol prices as a natural outcome of Nigeria’s transition away from dependence on fuel imports.

The ongoing fuel price war has resulted in successive reductions at petrol stations across the country. Recently, Dangote Refinery cut its gantry price to approximately N699 per litre, prompting other marketers, including MRS filling stations and NNPCL outlets, to reduce pump prices to between N739 and N901 per litre in Abuja. According to Ojulari, the increased competition in the market ultimately favors consumers, and the present volatility will ease over time.

Ojulari emphasized that a healthy competitive environment benefits buyers, noting that the market will stabilize despite potential tension during the transition period. The current situation is a significant development in Nigeria’s efforts to reduce its reliance on imported fuel. As the country’s oil sector continues to evolve, the impact of competition on fuel prices is expected to have far-reaching consequences for consumers and the economy as a whole.

In the context of Nigeria’s economic landscape, the fuel price reductions can have a positive effect on the overall cost of living and doing business in the country. The Nigerian government has been working to increase local refining capacity and reduce dependence on imported fuel, which has been a major contributor to the country’s fuel subsidy burden. As the sector continues to undergo significant changes, the effects of competition on fuel prices will be closely monitored by consumers, businesses, and stakeholders in the oil industry.