The deregulation of Nigeria’s downstream oil sector has initiated a gradual reduction in petrol prices, driven by heightened competition among oil marketers.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributes the drop in pump prices to increased market competition and direct transactions with producers like the Dangote Petroleum Refinery. Chinedu Ukadike, IPMAN’s National Publicity Secretary, stated, “The meeting between IPMAN and Dangote has significantly removed about ₦10 from the prices of refined petroleum products.”

Ukadike highlighted that independent marketers are bypassing middlemen, further reducing costs. He predicted additional price drops before the year’s end.

A major oil marketer, speaking anonymously, confirmed that deregulation is fostering competition, leading to price adjustments. “Prices are going down, but there are no big announcements. Deregulation is in full swing,” the marketer said.

While petrol prices remain above ₦1,000 per litre in some locations, reductions of ₦10–₦15 have been recorded at certain stations. For example, prices dropped from ₦1,080 to ₦1,070 per litre last week.

However, the marketer warned against expecting a fixed price, stating, “You may not see ₦900; that is below cost. Prices will fluctuate based on market dynamics.”