Nigeria's wholesale petrol market is witnessing intense competition as major importers adjust their pricing strategies to compete with the dominant Dangote Petroleum Refinery. Recent data from multiple depots across the country reveals significant price movements among key market players.
Price Adjustments Across Major Depots
The Dangote Petroleum Refinery, currently the dominant supplier in Nigeria's domestic market, has set its ex-depot price at N847 per litre, representing a N3 reduction from its previous rate of N850. This strategic move appears to have triggered similar adjustments from competing companies.
Other major importers quickly followed Dangote's lead with downward price revisions. According to industry reports, A.A. Rano now sells at N848 per litre, marking a N4 decrease, while Aiteo and NIPCO Lagos both implemented minor reductions of N1, bringing their ex-depot prices to N846 and N847 respectively. Techno Oil recorded one of the most substantial declines, cutting its price by N6 to N850 per litre.
Mixed Market Reactions and Supply Dynamics
While most market players reduced their prices, some depots moved in the opposite direction. Rainoil Lagos increased its price by N2 to N850, while Soroman, Alkanes, and Northwest each added N10 to their prices, raising them to N865 per litre. Industry operators attributed these increases to logistics constraints and varying supply costs.
Further down the supply chain, Pinnacle and Honeywell reduced their prices by N4 to N849 and N848 respectively, while A.Y.M. Shafa maintains a price of N858 per litre.
Increased Fuel Supply and Market Implications
The competitive pricing comes amid increased fuel supply to Nigeria. Recent vessel movement records from the Nigerian Ports Authority indicate that approximately 149,500 metric tonnes of Premium Motor Spirit (PMS), equivalent to roughly 194.35 million litres of petrol, has either arrived in Nigeria or is scheduled for arrival.
The latest Shipping Position report reveals that Tincan Island Port accounted for the largest share of recent PMS imports, handling 58,500 metric tonnes within just two days. Calabar Port followed with 46,000 metric tonnes, while Warri Port managed 45,000 metric tonnes during the same period.
Market analysts suggest these mixed price adjustments reflect an intensifying battle for market share between the Dangote Refinery and traditional fuel importers. The competition is expected to continue driving price movements in the coming weeks as companies strategize to maintain their market positions.
The Nigerian National Petroleum Company Limited (NNPCL) has also joined the trend, reducing pump prices at its retail outlets. In Abuja, NNPC filling stations now dispense fuel at N945 per litre, down from N955, while Lagos stations have seen a slight reduction from N922 to N920 per litre.
