Petroleum marketers across Nigeria have expressed optimism about a potential decline in petrol prices following a renewed effort by the Nigerian National Petroleum Company Limited (NNPCL) to restore operations at key state-owned refineries. Recent developments indicate that NNPCL has entered into a strategic partnership with Chinese firms to accelerate the completion and rehabilitation of the Port Harcourt and Warri refineries. This move has sparked hope among stakeholders who believe increased local refining capacity could ease fuel costs nationwide. After years of inactivity, this initiative marks a significant shift in Nigeria’s energy sector, especially at a time when global oil dynamics are placing pressure on domestic fuel prices. NNPCL Signs Agreement with Chinese Firms On April 30, 2026, NNPCL formalized a Memorandum of Understanding (MoU) with Sanjiang Chemical Company and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Limited. The agreement focuses on supporting the completion and operational restart of the Port Harcourt and Warri refineries. It is worth recalling that the Port Harcourt refinery was shut down in May of the previous year for scheduled maintenance. Since then, along with the Warri and Kaduna refineries, it has remained non-operational despite billions of dollars reportedly spent on rehabilitation over the past two decades. Industry observers estimate that between $18 billion and $25 billion has been invested in refinery upgrades without delivering sustained results. During this period, Nigeria has heavily depended on imported fuel and privately owned facilities such as the Dangote Refinery in Lagos to meet domestic demand. Renewed Expectations Amid Economic Pressure The recent move by NNPCL under the leadership of Bayo Ojulari has reignited discussions about the viability of government-owned refineries. Many stakeholders see this partnership as a crucial step toward reducing reliance on imports and stabilizing fuel supply within the country. This development comes at a critical time when global geopolitical tensions are affecting oil markets. The ongoing crisis involving Iran, the United States, and Israel has significantly disrupted global energy supply chains. As a result, crude oil prices have surged. Data indicates that Brent crude and West Texas Intermediate have risen to approximately $112 and $104 per barrel respectively. This spike has directly influenced domestic petrol prices in Nigeria. Fuel prices in Abuja have climbed sharply, ranging between ₦1,364 and ₦1,380 per litre, compared to around ₦800 per litre just a few months earlier. Impact on Nigerians and the Economy The steady increase in petrol prices has had a ripple effect across various sectors. Transportation costs have surged, leading to higher prices of goods and services nationwide. For many Nigerians, this has further intensified economic hardship and reduced purchasing power. With inflationary pressure mounting, the urgency for sustainable fuel pricing solutions has become more pronounced. Marketers Speak on Expected Price Drop Reacting to the development, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, stated that the revival of local refineries would enhance competition within the downstream sector. According to him, increased availability of locally refined petroleum products will naturally lead to price reductions. He explained that a higher supply of refined products—whether petrol (PMS), diesel (AGO), or aviation fuel—would create competitive pricing, ultimately benefiting consumers. He described the project as long overdue but expressed satisfaction that tangible progress is finally being made. Call for Government Support and Incentives Similarly, Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized the importance of restarting the refineries at this critical period. He urged the Federal Government to introduce supportive measures for both consumers and marketers. According to him, providing financial incentives and funding support would enable marketers to lower pump prices. He further stressed that reviving local refining capacity is essential for long-term price stability and energy security in Nigeria. The Road Ahead While expectations remain high, the success of this initiative will depend on effective execution, transparency, and sustained commitment. If the refinery projects are completed and operate efficiently, Nigeria could significantly reduce its dependence on fuel imports. This would not only stabilize petrol prices but also strengthen the country’s economy by conserving foreign exchange and creating employment opportunities.
Petroleum products marketers in Nigeria have signaled the possibility of another reduction in the pump price of premium motor spirit, raising expectations of relief for motorists across the country. Industry stakeholders disclosed that petrol prices could fall to around ₦739 per litre nationwide, depending on the next move by Dangote Refinery. This development follows ongoing competition within Nigeria’s downstream oil sector, which has already triggered multiple price adjustments. The Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that its members have received assurances of direct petrol supply from Dangote Refinery at ₦699 per litre, with the arrangement expected to take effect in January 2026. Speaking in an exclusive interview, the President of IPMAN, Abubakar Maigandi, explained that the promised direct sales would significantly reduce logistics costs and enable independent marketers to sell petrol at a more affordable rate. According to information gathered by LMSINT MEDIA, the Nigerian National Petroleum Company Limited (NNPCL) recently adjusted its pump price to ₦815 per litre at its retail outlets in Abuja. This price change occurred amid intense competition among key players in the oil marketing space. Despite the reduction, the NNPCL price still remains ₦76 higher than the ₦739 per litre currently offered by Dangote Refinery-supported MRS filling stations, highlighting a clear disparity in fuel pricing across the market. Toward the end of the previous year, Dangote Refinery announced a substantial reduction in its petrol prices as part of a strategy aimed at gaining market dominance and outcompeting rival marketers. This decision effectively sparked a broader price war that has continued into 2026. Market observations show that petrol prices presently range between ₦739 and ₦900 per litre across different filling stations nationwide. The wide variation underscores the uneven impact of price reductions, with many Nigerians still unable to access cheaper fuel. While Dangote-backed outlets offer lower prices, several stations—including some operated by major marketers—continue to sell petrol at much higher rates, particularly in Abuja and other urban centers. As a result, the majority of consumers have yet to experience the full benefit of recent price cuts. Addressing the situation, Maigandi stated that IPMAN members are prepared to cap petrol prices at ₦750 per litre once Dangote Refinery commences direct distribution to independent marketers. He explained that Dangote had assured marketers that direct supply would begin in January 2026, eliminating the need for middlemen and significantly reducing transportation expenses. According to Maigandi, once petrol is sold at ₦699 per litre from the refinery, transportation costs—estimated at around ₦15 per litre—would bring the final landing cost to approximately ₦750 per litre at filling stations. He noted that once direct deliveries begin, fuel queues would ease, supply would stabilize, and marketers would be able to immediately reduce prices at the pump. Maigandi emphasized that the anticipated development would encourage more marketers to purchase directly from the refinery, resulting in increased competition and further price moderation. It will be recalled that in December, Dangote Refinery slashed its gantry price from ₦838 to ₦699 per litre, a move that reshaped pricing dynamics across the downstream sector. Subsequently, Aliko Dangote, President of the 650,000-barrel-per-day refinery, approved a pump price of ₦739 per litre for MRS filling stations nationwide. However, despite these reductions, the price adjustment has not been uniformly adopted across the sector, with petrol still retailing for as much as ₦900 per litre in parts of Abuja and other regions. Market watchers believe that the commencement of direct sales to independent marketers could serve as a turning point, potentially closing the existing price gap and extending the benefits of cheaper petrol to a larger segment of the population.
