The landing cost of imported Premium Motor Spirit (PMS), commonly known as petrol, has decreased to ₦797.66 per litre as of March 17, 2025. This reduction is attributed to declining global crude oil prices and intensified competition among local refiners.
The inauguration of the Dangote Refinery, with a capacity of 650,000 barrels per day, has introduced significant competition in Nigeria's downstream oil sector. The refinery's strategic price reductions have prompted other market players, including the Nigerian National Petroleum Company Limited (NNPC), to adjust their pricing structures. Consequently, petrol prices in Lagos have fallen to approximately ₦860 per litre, reflecting genuine supply and demand dynamics.
Independent oil marketers are facing challenges due to the ongoing price war, leading some to operate at a loss. In response, these marketers are considering reducing their fuel purchases to minimize financial setbacks.
Analysts anticipate that if current trends persist, retail petrol prices may stabilize around ₦800 per litre in the coming weeks. This projection aligns with the recent decrease in landing costs and the competitive strategies employed by major industry players.