Petrol Panic: Marketers Wail Over Heavy Losses As NNPC Cuts Price Details

Petroleum product marketers are voicing serious concerns about mounting financial losses following the Nigerian National Petroleum Company Limited (NNPC)’s recent cut in petrol prices.

The price of Premium Motor Spirit (PMS) was reduced to ₦880 per litre in Lagos and ₦935 per litre in Abuja, leaving marketers grappling with the fallout.

On Easter Monday, NNPC retail stations in Lagos revised their pump price downward from ₦925 to ₦880, while Abuja outlets dropped from ₦950 to ₦935. The move came shortly after Dangote Refinery reduced its ex-depot price from ₦865 to ₦835 per litre.

Dangote, a major force in the oil sector, also instructed partners like MRS, Heyden, and Ardova to reflect new prices—₦890 per litre in Lagos, ₦900 in the South West, ₦910 in the South-South, and ₦920 in the North East. The NNPC’s latest Lagos rate is now ₦10 lower than Dangote’s, igniting a new round of price competition.

Some NNPC stations are still selling at the old prices, as operators are permitted to deplete their existing stock before adjusting. A memo from NNPC Retail has confirmed the new price directive, although many marketers are struggling with the financial implications of selling old stock at a loss.

Marketers Confirm Financial Strain

Speaking to The PUNCH, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the price adjustment and its impact on the industry.

“Yes, NNPC has reduced the pump price. It’s now ₦880 in Lagos. Some stations have adjusted, but others are still selling at old rates like ₦910 due to unsold stock,” he explained.

Fashola noted that independent marketers are in a similar bind, attempting to clear old inventory before restocking at the new lower prices.

He admitted that while fuel price swings are expected in a deregulated market, the current reduction has hit marketers hard.

“The price cut is good news for consumers, but for marketers, it means heavy losses. That’s the plain reality,” Fashola said.

Despite the tough situation, he assured that marketers are working to adapt and navigate the challenges.