A fierce petrol price war has erupted across Nigeria, with independent retailers slashing pump prices below the ₦739 per litre benchmark set by Dangote Petroleum Refinery.
In December, Dangote Refinery reduced its ex-depot price from ₦828 to ₦699 per litre, aiming to make fuel more affordable and accessible. This move prompted MRS filling stations, a major distributor of Dangote’s products, to begin selling petrol at ₦739 per litre nationwide.
In response, other marketers have lowered their prices to remain competitive. Some stations in Lagos and Ogun states are now selling petrol for as low as ₦750 per litre, while others have reduced prices by about ₦100 per litre, even selling below their cost of purchase.
The Nigerian National Petroleum Company Limited (NNPC) also joined the price war, cutting its pump prices below ₦800 per litre to retain customers.
This intense competition has led to significant financial losses for both importers and Dangote Refinery. The Independent Petroleum Marketers Association of Nigeria (IPMAN) estimates that marketers could lose over ₦80 billion due to the price reductions.
Despite the losses, Dangote Refinery has implemented strategies to support marketers, including reducing the minimum purchase requirement to 250,000 litres and introducing a 10-day credit facility. These measures have increased the number of fuel trucks loading from the refinery daily to over 1,000.
Aliko Dangote, President of Dangote Group, emphasized the company’s commitment to making energy affordable, stating, “Our goal has always been to make energy affordable and accessible for every Nigerian.”
As the price war continues, consumers are benefiting from lower petrol prices, while marketers and importers navigate the challenges of a highly competitive market.
