Yemisi Izuora
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has said that Nigerians would benefit from the intense price competition currently playing out in the downstream petroleum sector.
Ojulari said the market tensions arising from the ongoing fuel price war are temporary and reflect Nigeria’s transition from decades of fuel import dependence to increased domestic refining capacity.
Speaking to journalists on Sunday after briefing President Bola Tinubu in Lagos, the NNPCL boss said competition in a deregulated market would naturally lead to price adjustments and eventual stability.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. The market will stabilise, but during a major transition like this, some tension is inevitable,” he said.
However, key market operators have expressed concern over the price fluctuations.
A key major marketer, while analyzing the market operations said the medium and long term repercussions will likely overwhelm consumers.
He said, that both Dangote refinery and marketers are currently counting losses and when the market settles they will pass the losses to consumers.
Also, the Crude Oil Refiners Association of Nigeria (CORAN), said that the ongoing price fluctuations for Premium Motor Spirit (PMS) also called petrol should not be considered a positive trend that will beneficial afterwards.
The Association said that market stability is the best option for the country where pricing is determined by market operations that is also sustainable.
CORAN Spokesman, Eche Idoko, said, what is playing out now is temporary price adjustments that is not sustainable.
Idoko, said that if the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA) and the Nigerian Upstream Petroleum Regulatory Authority (NUPRC) would fully implement all industry incentives especially as it affects local refiners, Nigeria would witness more quality and stable supply and pricing mechanism.
According to Idoko, if the federal government sustains and expand the naira-crude initiative the market will Nigerians will enjoy lower price of petrol
He said after careful review of the policy it was considered a huge success as it helped to strengthen the naira and crashed the price petrol.
The Association he said had made several presentations and demand to authorities especially to NMDPRA to establish a mechanism for pricing that will determine a benchmark to guide pricing module.
He said what is playing out now is clear absence of regulatory requirements that will not offer the market the benefits of petroleum industry stability.
However, Ojulari’s remarks is coming amid a sharp drop in petrol prices across the country, driven by competition among Dangote Refinery, NNPCL retail outlets and independent marketers. Pump prices, which exceeded N1,200 per litre in November 2024, have fallen to as low as N739 per litre at some stations in December 2025.
Ojulari said Nigerians would ultimately gain from the competition, stressing that falling prices were evidence that market forces were beginning to work.
“At the end of the day, Nigerians on the street are going to be the beneficiaries,” he stated.
He clarified that under the Petroleum Industry Act (PIA), NNPCL no longer regulates fuel prices or the downstream sector, noting that its role has been separated from regulatory oversight.