Fuel Price War: Marketers Slash Petrol Prices by N100 as Dangote Resumes Free Delivery Nationwide
- A price war is raging in Nigeria’s downstream petroleum sector, with marketers taking on the giant Dangote Refinery
- The latest move by independent marketers seeks to upstage the refinery, as the facility begins nationwide fuel distribution
- Experts have said the development is a by-product of a deregulated market where the fittest survive
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s downstream oil market has been thrown into intense competition as several filling stations slash petrol prices by as much as N100 per litre following the resumption of free nationwide delivery by the Dangote Petroleum Refinery.
The move has triggered a full-blown fuel price war, forcing marketers to sell below cost to retain customers.
Source: Getty Images
Dangote gantry price cut sparks market shock
As more MRS filling stations in Lagos and Ogun states began dispensing Dangote-produced PMS at N739 per litre, motorists increasingly boycotted outlets selling petrol above N800.
The shift in consumer behaviour has compelled rival stations to reduce prices sharply, highlighting the severity of the ongoing battle for market share.
The competition intensified after Dangote Refinery slashed its gantry price by N129, from N828 to N699 per litre.
Aliko Dangote disclosed that intelligence reports suggested some marketers planned to keep pump prices high despite the reduction.
Motorists flock to cheaper fuel stations
In response, the refinery moved swiftly to enforce the new pricing regime, starting with MRS outlets.
Dangote stated that the refinery was determined to ensure petrol sold for no more than N740 per litre nationwide during December and January, warning that attempts to sabotage price reductions would be resisted using all available resources.
Following the price drop, long queues formed at MRS stations across Lagos, particularly in Alapere, as motorists abandoned outlets selling above N800 per litre.
By the weekend, many stations had begun adjusting prices downward to stay competitive.
In Ogun State, SGR sold petrol at N750 per litre, while Petrocam in Mowe reduced its price to N785.
Mobil stations along the Lagos-Ibadan Expressway sold at N780, while others, such as Akiavic, Eternal, and Asharam,i adjusted prices to between N799 and N890 per litre.
These represented reductions of N100 or more from previous levels near N900.
Marketers and NNPC feel the pressure
The Nigerian National Petroleum Company Limited also cut prices from N875 to between N825 and N840 per litre, depending on location.
However, with a landing cost estimated at N828 per litre, importers face mounting losses competing with Dangote’s N699 ex-depot price.
As the sector remains fully deregulated, many NNPC stations in Lagos now struggle to attract customers who prefer cheaper alternatives.
Industry estimates suggest petrol importers could lose up to N102.48bn monthly, while Dangote Refinery itself may lose about N91bn in the same period due to aggressive pricing.
IPMAN backs Dangote as price determines patronage
According to a report by Punch, the Independent Petroleum Marketers Association of Nigeria confirmed that price competition now determines customer loyalty.
Its spokesperson, Chinedu Ukadike, noted that any marketer unwilling to adjust prices risks losing patronage and facing mounting bank interest costs.
IPMAN has since entered a strategic partnership with Dangote Refinery, enabling members to load petrol directly from the facility.
The refinery reduced the minimum purchase requirement to 250,000 litres, making access easier for independent marketers who control over 85% of filling stations nationwide.
1,000 trucks daily as Dangote becomes distribution hub
Dangote Refinery confirmed that over 1,000 fuel trucks now load petrol daily, positioning the facility as Nigeria’s main fuel distribution hub.
The refinery also introduced a 10-day bank guarantee system to reassure marketers and ensure uninterrupted supply.
Source: UGC
Dangote reiterated that the strategy aims to make energy affordable and accessible while strengthening competition.
With petrol now officially selling at N739 per litre at MRS stations nationwide, the fuel market appears set for sustained competition, with consumers emerging as the immediate beneficiaries.
IPMAN backs Dangote Refinery’s new rate
Legit.ng earlier reported that Petrol marketers across Nigeria are adjusting pump prices following a fresh pricing framework announced by the Dangote Petroleum Refinery, a move strongly backed by the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The association says the development will stabilise supply, curb scarcity fears and ease pressure on consumers over time.
IPMAN disclosed that it has reached a landmark agreement with the Dangote Refinery to supply Premium Motor Spirit (PMS), also known as petrol, directly to its registered members nationwide.
Source: Legit.ng
