Nigeria's downstream petroleum sector is experiencing a renewed petrol price war as Dangote Refinery adjusts its pricing to match depot operators and maintain competitiveness. The move follows several depots reducing their petrol prices below the refinery's ex-depot rate, prompting Africa's largest refinery to respond.
Dangote Refinery Responds to Market Pressure
To retain its market position, Dangote Refinery has announced a fresh ex-depot petrol price of N1,252 per litre, aligning with rates offered by leading depot operators. This adjustment follows an earlier increase of 0.46% to N1,256 per litre, after previously lowering it to N1,250 per litre. Analysts attributed the earlier hike to rising crude oil prices due to renewed tensions between the United States and Iran over the Strait of Hormuz.
Depot Operators Trigger Fresh Competition
The current price battle underscores growing rivalry between Dangote Refinery and petroleum depot operators, many of whom continue to import refined products despite the refinery's massive local production capacity. Data from PetroleumPriceNG shows several depots, including MRS, A.A. Rano, African Terminal, and Integrated, now offer petrol at N1,250 per litre, slightly below Dangote's previous rate. This aggressive pricing has intensified competition and raised expectations of further reductions.
Experts Predict Further Price Cuts
Energy policy experts believe the price war is far from over. "It is a matter of time. Dangote Refinery will soon drop its ex-gantry price because the price war is real and intense," energy analyst Osas Igho told Legit.ng. Market observers note that declining international crude oil prices could allow for more downward adjustments, offering relief to marketers and consumers.
Import Dispute Remains Unresolved
The renewed competition occurs amid an ongoing dispute between Dangote Refinery and authorities over fuel importation. The refinery previously challenged the continued issuance of petrol import licences by the Nigerian government and sued selected marketers involved in fuel imports. Dangote maintains it has sufficient capacity to meet domestic demand and argues that imports undermine local refining efforts.
Supply Capacity Debate Continues
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that Dangote Refinery supplied about 99% of Nigeria's domestic petrol requirements in April 2026. However, the Nigerian National Petroleum Company Limited (NNPC) maintains that the refinery alone cannot fully satisfy the country's fuel consumption needs. These differing positions fuel debate over the future of petrol imports and local refining's role in Nigeria's energy security strategy.
As competition intensifies and crude oil prices fluctuate, industry stakeholders are closely watching whether the latest pricing moves will trigger another round of petrol price reductions across the country.
Depots Announce New Petrol Prices
Legit.ng earlier reported that private depots followed Dangote Refinery in lowering petrol prices on June 1, 2026. Price cuts by operators range between N1 and N22 per litre, depending on location and volume. This move has further fueled competition in the downstream oil industry for customers.
