Dangote to Respond as NNPC, Independent Marketers Move to Undercut Refinery with Lower Costs

• Retail stations owned by the NNPC and independent marketers have crashed petrol prices below the Dangote Refinery rate
• Findings show that as of June 3, 2025, Al-Moruf Filling Station in the Igando area of Lagos now sells petrol at N865, and NNPC at N870 per litre
• Additionally, depot owners have also reduced their prices, with AITEO now offering PMS at N826 per litre

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s petroleum market is experiencing a new price war as independent marketers and financially backed filling stations crash prices below the N875 per litre sold by the Dangote Refinery partner stations.

As of June 3, 2025,  Al-Moruf Filling Station at the Power Line area in Igando in Lagos sells petrol at N865 per litre, Eunice filling station displayed N859, and MOJ sells for N865.

NNPC, other retailers drop PMS price

Meanwhile, NNPC Retail has also adjusted its rate to N870, adding to the growing list of stations challenging Dangote’s dominance in the petroleum retail market.

However, there are indications that the mega refinery may drop prices further to tighten control on the market.

Data from Petroleumprice shows that depot owners have also dropped their prices.

According to the report, AITEO depot now sells petrol at N826 per litre, offering resellers a good margin advantage.

Experts say these price movements come despite Dangote Refinery’s increased production capacity and recent refining gains.

They say these developments show a shift in price leadership, with private and independent operators overtaking the Dangote network.

Diesel prices also crash

According to industry experts, if depots and retailers can offer cheaper fuel than the 650,000 bpd-capacity refinery, it means a lot concerning economics and long-term pricing strategies.

They expect more aggressive pricing in the coming weeks as depot supply ramps up and independent marketers increase their market share.

Diesel prices are also reportedly under review, with depot transactions inching towards underpricing trends.

Energy experts say Nigeria’s deregulated downstream sector is now fully exposed to market forces, and competition is growing.

Marketers unite against Dangote Refinery

While Dangote’s presence changed domestic refining, retailers are finding new ways to compete and remain consumer-friendly.

A recent report by Legit.ng disclosed that Independent marketers were banding together to minimise losses caused by the incessant price reductions by the Dangote refinery.

The report stated that the marketers now combine to buy about 40,000 litres of petrol for two or more marketers to minimise high exposure to losses.

Dangote Refinery to import 5 million barrels of crude

Legit.ng earlier reported that Dangote Refinery would continue its crude oil imports, with reports saying that it had already secured five million barrels of US WTI scheduled for July this year.

The mega 650,000 bpd capacity facility was set to import about 161,000 barrels per day of West Texas Intermediate (WTI), Reuters quotes sources as saying, extending its buying spree after June supplies.

According to the report, the final totals for July are subject to change if the refinery makes more purchases.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng