Nigeria’s petrol market is experiencing fierce competition as several retailers now sell fuel below the N739 per litre price set by Dangote Petroleum Refinery, intensifying the ongoing price war in the sector.
A weekend survey revealed that filling stations across the country have undercut the Dangote-backed MRS Oil outlets. NIPCO stations sold petrol at N738 per litre, SAO filling stations at N735, Akiavic at N737, and an AP station in Mowe, Ogun State, at N736 per litre.
The price reductions follow Dangote refinery’s decision in December to slash its gantry price from N828 to N699 per litre, prompting MRS to retail at N739. Since then, importers and depot owners have reported mounting losses as they struggle to remain competitive.
According to the Major Energies Marketers Association of Nigeria, imported petrol’s landing cost averages N762.38 per litre, higher than Dangote’s N699 ex-gantry price. Despite this gap, importers have reduced pump prices to compete for market share.
Filling stations in the same localities now closely monitor competitors’ prices to avoid losing customers. Motorists increasingly patronize outlets offering the lowest rates, leaving higher-priced stations struggling for business.
Industry operators insist the pricing strategy is purely market-driven. “This is not a function of whether imports are better or not, but simply a market strategy to get a good share of the market,” one operator said, speaking anonymously due to intense competition.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, explained that the market has entered a price-driven competition phase. “Patronage will be determined by pricing. The market will regulate itself,” he said, adding that marketers who fail to adjust risk losing customers while bank interest erodes their capital.
Dangote Group President Aliko Dangote had vowed in December to enforce the lower pricing regime, stating he would use available resources to keep nationwide pump prices at or below N740 during December and January. “Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure these prices are down,” Dangote declared.
The refinery has since expanded access to its products, reducing minimum purchase volumes from two million litres to 250,000 litres and offering a 10-day credit facility backed by bank guarantees. Daily loading from the refinery’s gantry ranges between 31 million and 48 million litres, according to a statement from Group Chief Branding and Communications Officer Anthony Chiejina.
These measures aim to support small and medium-sized operators, reduce imported fuel reliance, and promote competitive retail pricing. The refinery reaffirmed its commitment to transparency and collaboration with regulators to strengthen Nigeria’s energy security and conserve foreign exchange.
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