In a swift reversal, Nigeria’s state-owned oil company has reduced gasoline prices just two days after implementing a hike, sparking mixed reactions from fuel retailers. The Nigerian National Petroleum Company Limited (NNPCL) lowered its pump price to ₦900 ($0.60 USD) per liter at select outlets in Abuja, down from ₦955, marking a ₦55 cut. The adjustment, observed at stations in Gwarimpa, Kubwa Expressway, and Wuse Zones 4 and 6, comes amid broader volatility in the country’s fuel market.
“We sold at ₦955 yesterday, but today it’s ₦900,” an NNPCL station employee in Abuja confirmed anonymously, underscoring the abrupt shift. Independent retailers followed suit, with Ranoil and Empire Energy reducing prices to ₦955 and ₦950 per liter, respectively, down from earlier highs of ₦971 and ₦970. Meanwhile, MRS Oil stations maintained their rate at ₦885, signaling divergent pricing strategies among companies.
The oscillations follow a nationwide increase in fuel costs linked to rising wholesale prices from domestic depots and the Dangote Refinery, Africa’s largest oil facility. Analysts attribute the fluctuations to supply chain adjustments as Nigeria gradually shifts from fuel imports to local refining. While the Dangote Refinery began operations earlier this year, its pricing policies have drawn scrutiny for influencing market trends.
Fuel costs remain a contentious issue in Nigeria, where despite being a major oil producer, decades of underinvestment in refineries and infrastructure have kept the country reliant on imports—and vulnerable to price shocks. The NNPCL’s abrupt rate changes this week reflect the delicate balance between market dynamics and public concerns over affordability.
Observers note that while the reduction offers temporary relief, broader reforms are needed to stabilize prices. The NNPCL has yet to issue an official statement on the adjustments, leaving retailers and consumers to navigate the uncertainty. For millions of Nigerians, gasoline affordability directly impacts transportation and living costs, making such volatility a reflection of deeper economic challenges.
