Price War: Marketers Sign Deal With Foreign Suppliers to Crash Petrol Price to N700 Per Litre
- Petroleum product marketers are making alternative arrangements to import cheaper petrol into Nigeria
- The marketers said they have engaged foreign suppliers to import the product at much lower rates than what Dangote Refinery offers
- They disclosed that the deal will see them sell fuel at N700 per litre, with the landing cost pegged at N650
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Major petroleum product marketers in Nigeria have reportedly inked a deal with prominent global petrol suppliers to import cheaper products that will sell below Dangote and NNPC retail outlets.
According to reports, the deal will see the marketers selling petrol at about N700 per litre, far cheaper than what is obtained at NNPC and Dangote Refinery partner stations.
Source: UGC
IPMAN asks Dangote to lower petrol prices
Legit.ng reported earlier that the Independent Petroleum Marketers Association of Nigeria (IPMAN), asked the Dangote Refinery to lower its petrol prices below N800 per litre.
IPMAN’s publicity secretary, Chinedu Ukadike, said that the current ex-depot price offered by the refinery is still high given the current market dynamics.
He predicted that the product would sell below N700 per litre if the naira appreciated to N1,100 per dollar.
Marketers engage foreign suppliers to crash prices
Meanwhile, Leadership quotes sources as saying that the new deal with foreign suppliers will see petrol landing costs crash to N650 per litre.
The report said that marketers are already positioning themselves and their businesses to thrive with alternative product sourcing.
Billy Gillis-Harry, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said marketers are seeking to procure products from international sources.
Gillis-Harry said the move is a survival tactic for the marketers, as Dangote Refinery's incessant price adjustments have crumbled their businesses.
Marketers lament losses
He said the marketers want predictive market data that allows them to plan and project investments, stating that the marketers are indebted to financial institutions as petrol prices keep changing.
“So we want refineries to work and give us supply, then we import when their products are high, and then depot owners will keep their depot open and marketers will have open market operations,” he said.
The PETROAN boss warned that queues may return to petrol stations if the situation is not properly managed.
He said the products he procured from Dangote Refinery are becoming bad business, saying that the incessant petrol price crash by the refinery is affecting their profit margin.
Diesel scarcity looms
He said the marketers are losing the market to the mega refinery, saying that they are engaging their foreign partners to import petrol at an affordable rate.
He revealed that there may be a scarcity of diesel due to the shutdown of the Aradel Refinery. The facility currently processes 11,000 barrels per day at Ogbele.
Source: UGC
It produces other products such as diesel, Marine Diesel Oil, and naphtha, and plans to begin liquified petroleum gas (LPG) and petrol production.
Importers predict new petrol landing cost
Legit.ng previously reported that the Major Energies Marketers Association of Nigeria (MEMAN) has said that petrol landing cost in June 2025 is expected to be around N950 per litre.
The association’s report shows that the landing cost of PMS in November 2024 was about N971 per litre.
MEMAN members are key players in the Nigerian downstream petroleum industry, providing reliable data on landing costs and other market information.
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Source: Legit.ng
