A significant shift is underway in Nigeria's fuel market as the Dangote Petroleum Refinery continues to sell petrol at a price substantially lower than imported alternatives. This move is intensifying competition and reshaping the landscape for consumers and marketers alike.
Dangote's Pricing Power Disrupts the Market
The refinery has maintained an ex-depot price of N699 per litre for petrol, also known as Premium Motor Spirit (PMS). In stark contrast, data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that the landing cost for imported petrol has been fluctuating between N750 and N780 per litre.
In its latest bulletin on Thursday, January 15, 2026, MEMAN reported the landing cost at N754.96 per litre. This creates a price difference of approximately N44 per litre in favour of petrol sourced from the Dangote facility, giving it a decisive competitive edge.
"We Crash the Price Down": Dangote's Commitment
Aliko Dangote, the refinery's founder, has been vocal about his strategy to make fuel more affordable for Nigerians. Speaking in December, he declared a commitment to aggressive pricing to benefit consumers.
"We are going to use whatever resources we have to make sure that we crash the price down," Dangote stated. "For December and January, we don't want people to sell petrol for more than N740 nationwide. Those who want to keep the price high, we will fight as much as we can to make sure these prices are down."
He further emphasized that marketers could purchase directly from the refinery at the N699 per litre rate, a move designed to force lower prices at the pump.
Market Reaction and Nationwide Supply
The ripple effects of Dangote's pricing are already visible. Filling stations supplied by the refinery and its partners, such as MRS, are now selling petrol at around N739 per litre. This has triggered a price war, with some independent marketers attempting to undercut this benchmark to attract customers.
David Bird, the Managing Director of Dangote Refinery, defended the N739 retail price as fully competitive. He stressed that Nigerian consumers now have a clear choice and highlighted the refinery's operational success.
"The consumer has a choice to choose whichever, and I'd like to see a change in how the regulator works for the market," Bird said on Wednesday, January 15. He also revealed impressive supply figures, noting the refinery achieved a distribution of 1000 trucks daily and supplied 500 million litres during the Yuletide season, assuring of continued nationwide availability and price stability.
In a demonstration of its capacity, the refinery reported delivering a massive 43.3 million litres of PMS to the market in a single day on Saturday, January 3. Officials stated this volume was enough to meet more than half of Nigeria's estimated daily consumption, dismissing rumours of a production shutdown.
Challenges and the Road Ahead
While consumers celebrate lower prices, some marketers have expressed concerns. They blame recent price surges in other areas on losses incurred due to the pressure to match Dangote's cuts. The situation underscores the growing tension between the new local production giant and established import-dependent supply chains.
The sustained price advantage held by the Dangote Refinery marks a pivotal moment for Nigeria's energy sector. It not only promises relief at the pump but also challenges the long-standing dynamics of fuel importation, potentially leading to greater price stability and energy security in the long run.
