A fierce price competition is reshaping Nigeria's petroleum retail landscape, with several filling stations now selling Premium Motor Spirit (PMS), commonly known as petrol, for less than the N739 per litre benchmark established by the Dangote Petroleum Refinery.
Stations Slash Prices to Attract Customers
The strategic price reductions are a direct response by oil marketers aiming to retain their customer base and stay competitive. This move comes despite the rising operational costs affecting the market. A recent market survey uncovered specific retail outlets that have adjusted their pump prices, sometimes even operating at a loss, to remain attractive to buyers.
The survey identified the following stations and their new prices:
- NIPCO filling stations: Selling at N738 per litre.
- SAO outlets: Pricing petrol at N735 per litre.
- Akiavic stations: Offering fuel at N737 per litre.
- An AP filling station located beside an MRS outlet in Mowe, Ogun State: Dropped its price to N736 per litre. This is notably lower than the adjacent MRS station, which continues to sell at the Dangote-backed rate of N739.
In contrast, NNPC retail stations were observed selling at significantly higher prices, with rates of N785 in Lagos and N815 in Abuja.
Why Petrol Prices Are Falling
This wave of price adjustments was triggered by a pivotal decision from the Dangote refinery in December 2025, when it slashed its gantry price from N828 to N699 per litre. While the refinery's goal was to enhance the accessibility of locally refined petrol, the drastic cut forced importers and depot owners to urgently recalibrate their own retail strategies.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has clarified that market demand is now the primary driver of retail pricing. Patronage is swiftly shifting to stations that offer the most competitive rates. The association warns that marketers who resist adjusting their prices face the severe risk of losing customers as interest charges and other operational costs continue to accumulate.
Dangote's Expanded Market Role
The Dangote refinery has significantly bolstered its influence by expanding its distribution network. It now supplies a broader range of operators, including small and medium-sized businesses, bulk consumers, and filling stations across the nation. The refinery's supply volumes have seen a dramatic increase, rising from 600 million litres in October 2025 to 1.5 billion litres by December 2025.
Daily gantry loadings now range between 31 million and 48 million litres. To further improve market accessibility, the refinery has also reduced its minimum purchase volume from 2 million litres to 250,000 litres and introduced a 10-day credit facility supported by bank guarantees.
This pricing turbulence is not limited to petrol. The diesel market is experiencing a similar downturn, with prices in depots approaching N900 per litre. This drop is attributed to an influx of supply, weak demand, and intense price-matching competition between private depot owners and the Dangote Refinery. From a high of over N1,100 in March 2025, diesel now trades between N911 and N955, with expectations of further declines as the market remains oversupplied.
