Petroleum Products Retail Outlets Owners Association of Nigeria president Billy Gillis-Harry said falling landing costs drove recent pump price reductions at major filling stations across Abuja.
In an interview with Media Talk Africa on Tuesday, Gillis-Harry attributed the downward adjustments at Nigerian National Petroleum Company Limited, MRS and other outlets to reduced import costs. “If the cost of landing reduces, we are morally bound to reduce price,” he said. “But we will not reduce price to the extent of staying out of business.”
NNPCL and MRS stations cut prices by between ₦36 and ₦40 per litre, bringing rates to between ₦1,265 and ₦1,299 per litre in the capital and surrounding areas. The move followed depot owners lowering ex-depot prices to compete with Dangote Refinery’s ₦1,215-per-litre gantry price.
Gillis-Harry emphasized that retailers do not operate at a loss. “You cannot sit down and project price upward or downwards,” he said. “There must be some dynamic force that will determine that. It is the cost.”
The price war signals deepening competition in Nigeria’s downstream petroleum sector since Dangote Refinery began domestic supply. Analysts say sustained lower landing costs could pressure prices further, though margins remain tight for independent marketers.
Industry observers note the reductions reflect market dynamics rather than regulatory intervention, marking a shift from previous pricing regimes. The development comes as Nigeria navigates fuel subsidy removal and exchange rate volatility that have kept consumer prices elevated.
Further adjustments will likely track global crude benchmarks, freight rates and the naira’s performance against the dollar.
