Petrol Price War: Dangote Refinery, Fuel Depots Slash Rates as Nigerians Await Relief at Pumps
- Dangote Refinery has and depot operators have renewed their price war in the downstream petroleum sector
- The development follows the petrol price cuts announced by the mega refinery last weekend
- In response, depot operators also mildly adjusted their prices to undercut Dangote Refinery’s growing market dominance
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
A fierce new price war is shaking Nigeria’s fuel market as Dangote Refinery and private depot operators battle for dominance with fresh petrol price cuts.
Both sides have introduced fresh cuts in petrol prices in a bid to gain market dominance and maintain customer loyalty.
Source: Getty Images
The renewed rivalry comes amid growing anxiety over the Federal Government’s planned 15% import tariff on petrol, which analysts warn could destabilize the still-fragile deregulated fuel market.
Dangote Refinery drops petrol price to ₦828 per litre
At the weekend, Dangote Refinery announced a new gantry price of ₦828 per litre, down from ₦877, marking a 5.6% reduction.
The refinery’s latest price adjustment, according to data from Petroleumprice.ng, took effect on Friday and represents its second major review in three months.
Oil marketers confirmed the new pricing, noting that it reflects Dangote’s strategy to stabilize supply and respond to market realities.
However, the move quickly triggered a chain reaction across the sector as private depot operators scrambled to protect their market share.
Depot operators respond with competitive discounts
In response, major depots such as Aiteo, Bovas, and Eterna reduced their prices to ₦850, ₦848, and ₦870 per litre respectively. Other players like AIPEC, Ardova, Integrated, and NIPCO also followed suit, adjusting their rates to between ₦868 and ₦870 per litre.
Despite these wholesale price cuts, the retail pump price of petrol across major filling stations remains unchanged at ₦920 per litre, offering no direct relief to consumers.
A market survey of Dangote retail partners, including MRS, Ardova, TotalEnergies, Heyden, Techno Oil, and Sunbeth, showed prices pegged at ₦920 per litre. Industry operators say the market remains too volatile for any retailer to risk selling below this average.
Marketers warn of losses amid volatile market
According to Daily Sun Depot marketers said that Dangote’s aggressive pricing has already pushed some operators into loss-making territory.
“Anyone selling below ₦920 is selling at a loss,” one marketer said. “The refinery’s ₦49 difference per litre is already squeezing margins.”
They described current price cuts as “survival moves”, aimed at keeping their businesses afloat rather than improving consumer prices.
Experts caution against import tariff on petroleum
Meanwhile, energy experts have urged caution over the government’s plan to introduce a 15% import tariff on petrol.
Tanya Stepanova, Research Director at S&P Global Commodities Insights, warned during a MEMAN webinar that Nigeria still relies heavily on imports to supplement local production.
She revealed that some imports from Togo may not be fully captured in trade data, suggesting the country’s import volumes are underreported.
Similarly, MEMAN’s Executive Secretary, Clement Isong, said the tariff could raise petrol prices for low-income households and small businesses.
He called for transparent pricing data and gradual, evidence-based policy implementation to avoid destabilizing the market.
Isong further warned that new tariffs could distort competition and force smaller importers out of business, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify oversight.
The bottom line
Nigeria’s fuel market is at a critical crossroads. While Dangote Refinery’s price cuts signal progress toward local market control, the absence of retail relief and the looming import tariff risk undoing recent gains.
Source: Getty Images
For consumers still paying ₦920 at the pump, the battle for market dominance remains a distant benefit, at least for now.
Dangote Refinery hikes cooking gas price again
Legit.ng earlier reported that Nigerians are bracing for another round of cooking gas price hikes as the Dangote Refinery increased its depot price for Liquefied Petroleum Gas (LPG), sparking immediate reactions from dealers and retailers across the country.
Checks by Legit.ng show that the refinery now sells LPG at ₦930 per kilogram, up from ₦840 just days earlier, a nearly 11% increase in less than a week.
Following the refinery’s price adjustment, major depot operators and retailers have begun updating their prices to reflect the new market realities.
Source: Legit.ng
