The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has assured Nigerians that the ongoing fuel price war is a sign of healthy competition in the oil sector, which will ultimately benefit consumers.
Speaking to journalists after briefing President Bola Tinubu in Lagos, Ojulari said the current tensions in the market are part of Nigeria’s transition from total import dependence to domestic refining.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. This price war is a sign of healthy competition in the oil sector, and over time, the market will stabilise,” he explained.
Ojulari clarified that under the Petroleum Industry Act (PIA), NNPCL no longer regulates petroleum prices, adding that the company now operates as a commercial entity that must compete profitably.
“This price war is a sign of healthy competition in the oil sector, and our role is to focus on production and supply,” he said.
The CEO highlighted that Nigeria’s downstream petroleum sector has seen intense competition since the Dangote Refinery began producing petrol locally in September 2024, contributing to falling pump prices from over N1,200 per litre in November 2024 to as low as N739 per litre in some outlets by December 2025. Independent marketers have also adjusted prices to remain competitive.
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Ojulari also provided an update on NNPCL’s production achievements in 2025. Oil output has increased from 1.5 million barrels per day last year to over 1.7 million barrels per day, while gas production rose from 6.5 billion standard cubic feet to over 7 billion daily.
He said the company aims to reach 1.8 million barrels per day in 2026 as part of Nigeria’s broader energy expansion.
He further revealed that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline’s main line has been successfully welded, including the River Niger crossing, paving the way for northern Nigeria to benefit from increased gas supply for industrialisation, power, and fertiliser production.
“By boosting production and maintaining supply, we ensure the benefits of this price war are felt by Nigerians.
This price war is a sign of healthy competition in the oil sector, which will encourage further investment and efficiency,” Ojulari concluded.