The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bayo Ojulari, has declared that the ongoing intense price competition in the petrol market, primarily between the Dangote Refinery and other marketers, will result in significant benefits for consumers across Nigeria.
Market Tension is a Natural Transition Phase
Ojulari provided this assurance on Sunday, December 29, 2025, following a briefing with President Bola Tinubu in Lagos. He characterized the current market tensions as an expected outcome of the country's historic shift away from heavy dependence on imported fuel towards a new era of robust domestic refining capacity.
"Where there is healthy competition, the buyers are the ultimate beneficiaries. We need to keep in mind that the market will stabilise. There will be some tension because we are going through a major transition," the NNPC boss explained to journalists.
His comments come against the backdrop of a dramatic reduction in pump prices nationwide. From highs above N1,200 per litre in November 2024, prices have plummeted to as low as N739 per litre at some retail outlets in December 2025. This sharp decline is largely attributed to the fierce competition ignited by the entry of the 650,000-barrel-per-day Dangote Refinery, which began petrol production in September 2024.
PIA Frees NNPC from Price Regulation
Ojulari clarified a critical change in the market landscape, noting that under the Petroleum Industry Act (PIA), the NNPC Limited no longer functions as a price regulator for the downstream sector. The Act legally separated regulatory duties from commercial operations.
He detailed that oversight is now handled by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for downstream activities and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for upstream matters. Consequently, NNPC Limited operates purely as a commercial entity that must compete profitably, raise its own financing, and no longer receives direct allocations from the federation account.
The price war escalated noticeably in December 2025 when Dangote Refinery slashed its ex-depot price from N970 to N699 per litre. This aggressive move prompted its retail partner, MRS stations, to sell at N739 per litre nationwide. In response, NNPC retail outlets adjusted their prices to a range between N825 and N840 per litre, depending on location, while independent marketers also cut depot prices to compete.
Increased Production and Infrastructure Milestones
During his briefing with President Tinubu, Ojulari also reported positive strides in the nation's oil and gas production. He revealed that crude oil output has increased from approximately 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025. Gas production has similarly risen to more than seven billion standard cubic feet per day.
The NNPC is targeting at least 1.8 million barrels per day in 2026, as part of the federal government's broader goal of reaching two million barrels per day by 2027.
On critical infrastructure, Ojulari disclosed a major achievement: the completion of the main line of the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) gas pipeline, including the challenging River Niger crossing. This pipeline is expected to be commissioned in early 2026 and will support industrialization, power generation, and fertilizer production in Northern Nigeria.
Ojulari concluded by affirming NNPC's role as the "supplier of last resort", committed to working with all key players, including Dangote Refinery, to ensure stable fuel supply. He expressed confidence that the current market disruption is a temporary adjustment phase that will ultimately lead to a more efficient, competitive, and consumer-friendly petroleum market in Nigeria.
