Competition in Nigeria’s downstream oil sector intensified on Sunday as several petrol retailers reduced pump prices below the N739 per litre benchmark set by the Dangote Refinery, deepening an ongoing price war in the market.
The development follows a recent decision by Aliko Dangote, President of Dangote Refinery, to cut the company’s ex-depot price of petrol to N699 per litre and fix a nationwide retail price of N739 per litre at MRS filling stations. The move, which took effect in December, had given Dangote-linked outlets a pricing advantage over many marketers and fuel importers.
Since then, petrol prices at other outlets, including those operated by the Nigerian National Petroleum Company Limited (NNPCL), had remained significantly higher, selling between N815 and N840 per litre, depending on location.
However, fresh checks indicate that some independent marketers have now adjusted their prices to undercut Dangote’s rate, particularly in Lagos and Ogun states. As of Sunday, NIPCO stations sold Premium Motor Spirit (PMS) at N738 per litre, SAO outlets at N735, while Akiavic dispensed petrol at N737 per litre. An AP filling station located beside an MRS outlet in Mowe, Ogun State, was also observed selling at N736 per litre.
In contrast, petrol prices in Abuja remained unchanged as of Monday morning, with outlets operated by NNPCL, Rano Oil, Empire Energy, NIPCO, AA Rano, and AYM Shafa selling PMS at prices ranging from N815 to N839 per litre.
Reacting earlier to the evolving price dynamics, the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said independent marketers were responding positively to market forces and welcomed the availability of cheaper petrol for consumers across the country.
The latest price adjustments underscore growing competition in the deregulated downstream sector, as marketers seek to attract customers amid fluctuating supply costs and shifting pricing strategies.