Competition for market share between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has intensified, with the latter reducing the price of Premium Motor Spirit (PMS) to ₦860 per litre.

A market survey conducted by Channels Television on Tuesday confirmed the development.

This price cut follows Dangote Refinery’s recent decision to absorb a ₦16 billion loss by refunding ₦65 per litre to marketers to ensure Nigerians benefit from cheaper fuel. Over the weekend, the refinery announced that customers who purchase PMS at rates higher than its advertised prices from any of its key distributors—AP (Ardova Plc), Heyden, or MRS—will receive a refund.

Dangote Refinery recently lowered its gantry price from ₦890 per litre to ₦825 per litre, a move it says aligns with President Bola Tinubu’s Renewed Hope Agenda aimed at stimulating the economy.

“Effective from 27 February 2025, this initiative ensures that none of our valued business partners incur losses due to the price change. More importantly, it guarantees that the lower rate takes immediate effect nationwide for the benefit of the Nigerian people,” the refinery stated.

In a swift response, the NNPCL also reduced its pump price to ₦860 per litre at its stations in Lagos on Monday, intensifying the ongoing price war between the state-owned oil company and independent marketers.

Oil marketers who spoke to Channels Television on condition of anonymity confirmed the price change but noted that NNPCL had yet to issue an official memo regarding the new rate.

Currently, Dangote Refinery and NNPCL’s Port Harcourt refinery are the only petrol producers in Nigeria. However, NNPCL recently disclosed that it still procures petrol from Dangote Refinery for its Lagos stations, as it has not imported any fuel this year.

Dangote Refinery announced another price cut last Wednesday, introducing a new price regime in the Nigerian petrol market.

Observers have noted a shift in customer behaviour, with queues that were previously common at NNPC stations now appearing at private filling stations such as MRS. This trend is attributed to the price differential and claims that Dangote’s petrol lasts longer in fuel tanks than competing brands.

NNPCL spokesperson, Olufemi Soneye, has yet to respond to official inquiries regarding the development.