Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has predicted that the ongoing petrol price reduction in Nigeria will continue until June 2025.
Speaking on Channels Television’s Business Morning on Tuesday, March 4, 2025, Rewane explained that recent reductions by the Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery signal a competitive market that favors consumers.
Join our WhatsApp Channel“So, generally, between now and June, we will see prices begin to decline. But after June, as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilization,” he stated.
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Why Petrol Prices Are Dropping
Rewane attributed the petrol price reduction to a price war between Dangote Refinery and NNPCL. He stated that competition in the market is leading to lower prices, which benefits consumers in the short term.
“In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” he said.
Dangote Refinery recently lowered its pump price due to production cost efficiency and other economic factors. The company announced new prices for its petrol:
- ₦860 per liter in Lagos
- ₦870 per liter in the South-West
- ₦880 per liter in the North
- ₦890 per liter in the South-South and South-East
Similarly, Ardova Petroleum (AP) and Heyden stations now sell petrol at:
- ₦865 per liter in Lagos
- ₦875 per liter in the South-West
- ₦885 per liter in the North
- ₦895 per liter in the South-South and South-East
NNPCL Joins in Petrol Price Reduction
Following Dangote Refinery’s price cut, the NNPCL also adjusted its pump price to ₦860 per liter at its stations in Lagos. However, the corporation has not yet released an official statement confirming the price adjustment nationwide.
The petrol price reduction by both Dangote Refinery and NNPCL has excited retailers, as it suggests a more competitive pricing structure in the coming months.
Future Outlook on Petrol Prices
Rewane emphasized that the petrol price reduction will likely persist until mid-year. However, he noted that global oil market trends and currency fluctuations could influence future prices.
According to him, once the market stabilizes, prices may level out, and companies will settle into a competitive balance.
With the petrol price reduction benefiting consumers in the short term, analysts are watching the market closely to see how price leadership will be determined between the key players.
The petrol price reduction in Nigeria is driven by increased competition between Dangote Refinery and NNPCL. With both companies adjusting their prices, experts believe consumers will continue to enjoy lower costs until June. However, the long-term trend remains uncertain, depending on global economic factors.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
