Why NNPC Cut Petrol Prices Again: N1,150 Per Litre as Competition Heats Up
By Aboki Forex —
Nigerian petrol prices have dropped to N1,150 per litre as the Nigerian National Petroleum Company Limited (NNPCL) cut prices for the second time in less than two weeks. The latest reduction of N60 per litre brings the total price cut by the state-owned oil company to N110 per litre between June 27 and July 5, 2026.
The move comes amid a sustained decline in global crude oil prices and increasing competition among fuel suppliers. Industry analysts predict further price declines if crude oil stays low and competition remains strong.
Price War Intensifies in the Downstream Sector
NNPCL's latest price cut follows Dangote Refinery's fourth reduction in its gantry loading price, which brought the rate down to N1,075 per litre. The refinery's aggressive pricing strategy has triggered similar responses across the industry.
Independent marketers, including NIPCO, AA Rano and Ranoil, have also adjusted their retail prices, selling petrol between N1,205 and N1,240 per litre at selected outlets. A market survey conducted on Sunday showed that NNPCL retail outlets now sell petrol at N1,150 per litre, down from N1,210 per litre.
Depot Prices Crash to Lowest Levels Since March
The downward trend is evident at petroleum depots, where wholesale prices have fallen sharply to their lowest levels since March. Data from PetroleumPriceNG showed that several depot operators have reduced their prices to remain competitive with Dangote Refinery.
Pinnacle currently sells petrol at N1,075 per litre, while Emadeb offers the product at N1,077 per litre. FyneField and Soroman have also lowered their prices to N1,095 per litre. The falling depot prices are expected to encourage more marketers to reduce pump prices in the coming days.
Crude Oil Prices Drive the Decline
Industry analysts attribute the latest wave of price reductions to the decline in international crude oil prices. At the time of reporting, Brent crude traded around $72 per barrel, while West Texas Intermediate (WTI) hovered near $68 per barrel, reducing the cost of refined petroleum products.
"Crude oil prices have fallen to their lowest since March. This is the reason marketers are adjusting to the current reality fast," Adeola Yusuf, an energy policy analyst, told Legit.ng during a phone interview. According to Yusuf, petrol prices could continue their downward trend as tanker traffic normalises through the Strait of Hormuz, easing concerns over global supply disruptions.
What This Means for Nigerian Consumers
The sustained decline in petrol prices is expected to provide relief for households and businesses grappling with high transportation and operating costs. Analysts believe that if crude oil prices remain subdued and competition among refiners and marketers persists, motorists could see additional reductions at filling stations in the weeks ahead, potentially easing inflationary pressures across the economy.