Nigeria’s state-owned oil company NNPC has started the new year with another reduction in the pump price of petrol, although this has not been announced publicly.
Checks conducted across its retail outlets nationwide earlier this week show the pump price of petrol dropping by an average of N20, from N835 per litre to N815 per litre.
This is NNPC’s first price adjustment in 2026 following its N80 price slash of 19 December 2025, which came at a time of fierce competition in Nigeria’s downstream sector between private operators and the Dangote refinery.
Dangote’s emergence in the fuel sector has quite changed the conversation around petrol pricing in Nigeria, implementing changes almost at every turn in the global oil market.
In December, the mega refinery announced a sharp reduction in its ex-depot price, with petrol selling for as low as ₦699 per litre. The move sent a clear signal to the market and forced other players, including NNPC to review their pricing.
Notwithstanding, even with the latest reduction, petrol sold at NNPC stations is still more expensive than fuel sold at Dangote-affiliated outlets.
As of Monday morning, motorists buying fuel at Dangote stations were paying about ₦739 per litre, making it a cheaper option for many drivers.
Energy analysts say what Nigerians are witnessing is a fuel market slowly adjusting to deregulation, where competition rather than government directives influences prices.
They also point out that as more locally refined fuel enters the market, price adjustments are likely to become more frequent.
For everyday Nigerians, the cuts are welcome, even if they are considered modest.
In the meantime, transport costs remain high and fuel prices continue to affect the cost of living. Still, many motorists are hopeful that the ongoing competition between NNPC, Dangote Refinery and independent marketers will lead to more meaningful reductions in the months ahead.
As the year progresses, all eyes will remain on how these pricing battles shape fuel affordability and economic activity across the country, even as a 15% import tariff imposed by Bola Tinubu’s government kicks off this quarter.
Dangote’s main petrol‑producing unit is currently undergoing scheduled maintenance, but the refinery has assured the public it has enough stock to meet domestic demand.