A fierce price war has erupted in Nigeria's downstream petroleum sector, throwing the market into intense competition. This follows the resumption of free nationwide fuel delivery by the Dangote Petroleum Refinery, prompting independent marketers to slash petrol prices by as much as N100 per litre in a desperate bid to retain customers.
Market Shock as Dangote Cuts Gantry Price to N699
The competition escalated dramatically after Dangote Refinery made a decisive move, reducing its gantry price by a substantial N129, from N828 to N699 per litre. Aliko Dangote, the refinery's owner, revealed that intelligence indicated some marketers planned to keep pump prices high despite the reduction. In response, the refinery moved swiftly to enforce the new pricing, starting with MRS outlets across Lagos and Ogun states, where petrol was dispensed at N739 per litre.
Dangote stated the refinery's determination to ensure petrol sells for no more than N740 per litre nationwide during December and January, vowing to resist any attempts to sabotage the price reductions. This aggressive stance triggered an immediate shift in consumer behaviour, with motorists boycotting stations selling above N800 per litre.
Motorists Flock, Marketers Feel the Pressure
The impact was instantaneous. Long queues formed at MRS stations in areas like Alapere, Lagos, as drivers sought cheaper fuel. This forced rival stations into rapid price adjustments to stay competitive. Across Ogun State and the Lagos-Ibadan Expressway, a wave of reductions swept through outlets:
- SGR sold at N750 per litre.
- Petrocam in Mowe reduced to N785.
- Mobil stations adjusted to N780.
- Others like Akiavic, Eternal, and Asharami slashed prices to between N799 and N890, down from previous levels near N900.
The pressure extended to the Nigerian National Petroleum Company Limited (NNPC), which cut its prices from N875 to between N825 and N840 per litre. However, with the estimated landing cost for importers at N828 per litre, they face severe losses competing with Dangote's N699 ex-depot price. Industry estimates suggest petrol importers could lose up to N102.48 billion monthly, while Dangote Refinery may also incur losses of about N91 billion due to its aggressive pricing strategy.
IPMAN Backs Dangote, 1,000 Trucks Daily as New Hub Emerges
The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that price is now the ultimate determinant of customer loyalty. Its spokesperson, Chinedu Ukadike, warned that any marketer unwilling to adjust prices risks losing patronage and facing mounting bank interest costs.
In a significant development, IPMAN has entered a strategic partnership with Dangote Refinery, allowing its members—who control over 85% of filling stations nationwide—to load petrol directly. The refinery facilitated this by reducing the minimum purchase requirement to 250,000 litres.
Dangote Refinery has now positioned itself as Nigeria's primary fuel distribution hub, with confirmation that over 1,000 fuel trucks load petrol daily. The facility also introduced a 10-day bank guarantee system to reassure marketers and ensure supply stability. Dangote reiterated that the strategy aims to make energy affordable while strengthening healthy market competition.
With petrol officially selling at N739 per litre at MRS stations nationwide, the fuel market is set for sustained rivalry. In this deregulated environment where experts say only the fittest survive, Nigerian consumers have emerged as the immediate and clear beneficiaries of this intense price war.
