NNPC Struggles To Match Dangote Refinery Retail Petrol Price
- The NNPC limited petrol is more expensive than Dangote Refinery partners’ prices, which implemented a retail price of N739
- Motorists are increasingly choosing to buy petrol from filling stations offering cheaper rates, bypassing NNPC outlets
- The price gap shows the pricing competition currently going on since the deregulation of the petroleum market
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Once the leader in Nigeria’s downstream petroleum market, the Nigerian National Petroleum Company Limited is facing growing challenges in competing on fuel pricing, particularly since the Dangote Refinery commenced operations.
On Monday, a litre of petrol at NNPC retail outlets in Lagos sold for N785, making it N46 more expensive than prices at MRS filling stations, a key partner of the Dangote Refinery.
Source: Getty Images
In the Federal Capital Territory, petrol at NNPC stations is sold for N815 per litre, compared with N739 implemented by Dangote’s partners across the country.
The price gap has seen motorists increasingly opting to fuel their vehicles at outlets offering cheaper rates, bypassing NNPC stations despite their widespread presence.
Dangote filling stations a game changer
The Dangote Refinery, Africa’s largest single-site refinery, began operations late last year with an initial production capacity of 650,000 barrels per day.
With integrated logistics and strategic partnerships with distributors like MRS, Dangote has been able to offer petrol at more competitive rates, reshaping the fuel retail landscape in Nigeria.
An energy analyst, Kunle Ajayi told Legit.ng:
“NNPC used to dictate the retail petrol market with fixed prices across the country, but the landscape has shifted. Dangote has introduced a new level of competition.
“Motorists are now making clear choices, going for the cheapest available fuel, which is increasingly at private stations buying from Dangote.”
Source: Getty Images
Dangote free petrol delivery
Dangote Petroleum Refinery has invited petrol station owners and dealers nationwide to register and benefit from its gantry price of N699 per litre, coupled with a free direct delivery service set to commence soon.
Dangote Petroleum Refinery in a previous post had outlined 10 key benefits of its new logistics and distribution model.
- Free delivery of fuel across Nigeria, ensuring stations receive timely supply.
- Credit facilities for bulk buyers, supported by bank guarantees to ease financial pressure.
- Elimination of logistics and transportation costs, reducing operational burdens for station owners.
- Lower fuel prices at the point of sale, providing relief for motorists.
- Improved accessibility to fuel in both urban and rural communities.
- Enhanced environmental sustainability through optimised delivery systems.
- Support for local economies and small businesses, boosting regional economic activity.
- Strengthened long-term energy security and improved national efficiency.
- Increased government revenue from more structured fuel distribution.
- Access to high-quality vehicles and equipment, enabled by the refinery’s production of Euro V and Euro VI standard fuels.
List of filling stations selling petrol below N739 pump price
Earlier, Legit.ng reported that the price war in Nigeria’s petroleum sector has deepened, with several filling stations now selling petrol below the N739 per litre benchmark set by the Dangote Petroleum Refinery.
The move comes amid intense competition among marketers seeking to retain customers and remain viable in a market affected by rising costs.
A survey conducted over the weekend revealed that some retail outlets have adjusted their pump prices to stay competitive, even at a loss.
Source: Legit.ng
