Ojulari said the current price tensions in the petroleum market are expected, describing them as a natural phase in Nigeria’s shift from fuel importation to local refining.
Speaking to journalists in Lagos after briefing President Bola Tinubu, the NNPCL boss said competition in any market always benefits buyers in the long run.
“Where there is healthy competition, the buyers are the ultimate beneficiaries,” he said. “What we are seeing now is part of a major transition, and the market will stabilise.”
His remarks come amid a fierce price war in the downstream petroleum sector, which has seen petrol prices drop sharply across the country.
In November 2024, fuel sold for over ₦1,200 per litre in many areas. By December 2025, prices had fallen to as low as ₦739 per litre at some retail outlets.
The sharp decline has been driven mainly by competition among Dangote Refinery, NNPCL retail stations, and independent fuel marketers.
Ojulari stressed that ordinary Nigerians would gain the most from the price battle.
“At the end of the day, Nigerians on the street are going to be the beneficiaries,” he said.
He also clarified that under the Petroleum Industry Act (PIA), NNPCL no longer controls fuel prices or regulates the sector.
The sharp decline has been driven mainly by competition among Dangote Refinery, NNPCL retail stations, and independent fuel marketers.
Ojulari stressed that ordinary Nigerians would gain the most from the price battle.
“At the end of the day, Nigerians on the street are going to be the beneficiaries,” he said.
He also clarified that under the Petroleum Industry Act (PIA), NNPCL no longer controls fuel prices or regulates the sector.
According to him, the law clearly separated regulatory duties from commercial operations.
“Before the PIA, everything was under NNPC, including regulation,” Ojulari explained. “Now, regulation is handled by independent bodies, while NNPCL operates purely as a business.”
He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) oversees downstream operations, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regulates upstream activities.
Ojulari added that NNPCL no longer receives funds from the federation account and must now raise money independently like any private company.
The competitive pressure in the fuel market intensified after Dangote Refinery began producing petrol locally in September 2024.
“Before the PIA, everything was under NNPC, including regulation,” Ojulari explained. “Now, regulation is handled by independent bodies, while NNPCL operates purely as a business.”
He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) oversees downstream operations, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regulates upstream activities.
Ojulari added that NNPCL no longer receives funds from the federation account and must now raise money independently like any private company.
The competitive pressure in the fuel market intensified after Dangote Refinery began producing petrol locally in September 2024.
With a capacity of 650,000 barrels per day, the refinery significantly boosted local supply and reduced dependence on imports.
According to official data, the average price of Premium Motor Spirit dropped by over ₦150 per litre between November 2024 and November 2025.
According to official data, the average price of Premium Motor Spirit dropped by over ₦150 per litre between November 2024 and November 2025.
The situation escalated further in December 2025 when Dangote Refinery slashed its ex-depot price from ₦970 to ₦699 per litre.
Following the move, MRS filling stations, Dangote’s retail partner, began selling petrol at ₦739 per litre nationwide. NNPCL outlets also reduced prices to between ₦825 and ₦840 per litre, depending on location. Independent marketers were forced to adjust prices to remain competitive.
Industry data shows that Dangote Refinery adjusted prices more than 20 times in 2025 alone.
However, the rapid price cuts have created challenges for fuel marketers who purchased stock at higher prices. Many now face losses or rising bank interest costs if they fail to sell quickly.
Ojulari described NNPCL as the “supplier of last resort,” saying the company works closely with all major players, including Dangote Refinery, to ensure fuel availability nationwide.
He acknowledged that the entry of large-scale refineries has disrupted the market but said the changes are ultimately positive.
“To be honest, having a refinery like Dangote operating locally will impact the market,” he said. “But it is a good reality for Nigeria.”
Ojulari also revealed that Nigeria’s oil production has increased from about 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025. Gas production has also risen significantly.
He added that NNPCL is targeting 1.8 million barrels per day in 2026 as part of efforts to meet President Tinubu’s long-term production goals.
On infrastructure, Ojulari confirmed that work on the Ajaokuta–Kaduna–Kano (AKK) gas pipeline has reached a major milestone, including the successful crossing of the River Niger.
Following the move, MRS filling stations, Dangote’s retail partner, began selling petrol at ₦739 per litre nationwide. NNPCL outlets also reduced prices to between ₦825 and ₦840 per litre, depending on location. Independent marketers were forced to adjust prices to remain competitive.
Industry data shows that Dangote Refinery adjusted prices more than 20 times in 2025 alone.
However, the rapid price cuts have created challenges for fuel marketers who purchased stock at higher prices. Many now face losses or rising bank interest costs if they fail to sell quickly.
Ojulari described NNPCL as the “supplier of last resort,” saying the company works closely with all major players, including Dangote Refinery, to ensure fuel availability nationwide.
He acknowledged that the entry of large-scale refineries has disrupted the market but said the changes are ultimately positive.
“To be honest, having a refinery like Dangote operating locally will impact the market,” he said. “But it is a good reality for Nigeria.”
Ojulari also revealed that Nigeria’s oil production has increased from about 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025. Gas production has also risen significantly.
He added that NNPCL is targeting 1.8 million barrels per day in 2026 as part of efforts to meet President Tinubu’s long-term production goals.
On infrastructure, Ojulari confirmed that work on the Ajaokuta–Kaduna–Kano (AKK) gas pipeline has reached a major milestone, including the successful crossing of the River Niger.
The pipeline is expected to be operational by early 2026, boosting industrial activity, power generation, and fertiliser production in northern Nigeria.
Despite the current market tensions, Ojulari maintained that competition would eventually balance itself.
“All we need to do is walk through this phase together,” he said. “In the end, the market will stabilise, and Nigerians will benefit.”
Despite the current market tensions, Ojulari maintained that competition would eventually balance itself.
“All we need to do is walk through this phase together,” he said. “In the end, the market will stabilise, and Nigerians will benefit.”
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