By Jose Oby 
A wave of discontent has swept through Nigeria’s petroleum marketing sector following a surprise slash in petrol prices by the Nigerian National Petroleum Company Limited (NNPC), triggering mounting losses for fuel station operators across the country.
In what industry observers have described as the start of a “petrol price war,” the NNPC on Easter Monday cut the pump price of Premium Motor Spirit (PMS) to ₦880 per litre in Lagos and ₦935 in Abuja, down from previous rates of ₦925 and ₦950 respectively.
The move came just days after the Dangote Petroleum Refinery initiated its own price reductions — adjusting its ex-depot rate to ₦835 per litre and directing partner stations such as MRS, Ardova, and Heyden to sell at between ₦890 and ₦920, depending on region.
The development, while hailed by consumers, has left independent marketers reeling.
“We are losing money — that’s the bitter truth,” said Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
According to Fashola, the NNPC Retail arm issued directives to its filling stations to implement the new prices immediately. However, stations with existing stock have been allowed to continue sales at previous rates to mitigate financial losses.
Some outlets in Lagos are still vending fuel at ₦910 per litre, as they attempt to exhaust old inventory before aligning with the revised pricing structure.
Fashola explained that while deregulation means fuel prices will fluctuate — a principle he supports — it also exposes marketers to significant volatility.
“The price cut is good for Nigerians, no doubt. But marketers are bearing the brunt. There’s nothing we can do. That’s how deregulation works,” he said.
When asked if prices could further plummet to ₦800 or even ₦700 per litre, Fashola declined to speculate, citing the unpredictable nature of global crude prices and the naira-dollar exchange rate.
“I won’t predict that. If oil crashes to $50 per barrel, it will reduce petrol prices, but hurt government revenue. It’s a double-edged sword,” he noted.
Meanwhile, analysts say the pricing rivalry between NNPC and Dangote could intensify in the coming weeks, potentially delivering even lower prices for consumers, but with more turbulence for downstream operators.
The Dangote refinery’s pricing actions followed a renewed government directive allowing the controversial naira-for-crude oil deal to continue indefinitely, adding more pressure to the already fragile dynamics of Nigeria’s fuel market.
As Nigerians enjoy temporary relief at the pump, marketers brace for a turbulent ride — and a profit margin under siege.