- Filling stations undercut Dangote’s petrol price, sparking a fierce competition in Nigeria’s petroleum market
- Motorists flock to cheaper outlets as price sensitivity returns, leaving costly stations struggling for customers
- Dangote Refinery introduces strategic measures to boost liquidity amid escalating price wars in downstream sector
The battle for market share in Nigeria’s downstream petroleum sector has escalated as several filling stations slashed the pump price of Premium Motor Spirit (PMS) below the N739 per litre benchmark promoted by the Dangote Petroleum Refinery.
A weekend survey revealed that petrol prices have now dipped beneath Dangote-backed rates in parts of Lagos, Ogun and other cities, signalling a deepening price war that is reshaping competition among marketers, depot owners and importers.
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Source: UGC
Stations undercut Dangote-backed MRS
Findings showed that some retail outlets are now selling PMS at prices lower than those offered by MRS Oil, the main retail partner endorsed by Dangote Refinery to implement the N739 per litre price cut announced in December.
As of Sunday, NIPCO sold petrol at N738 per litre, SAO filling stations dispensed PMS at N735, while Akiavic offered it at N737.
At Mowe in Ogun State, an AP filling station located close to an MRS outlet reduced its pump price to N736 per litre, intensifying competition within the same neighbourhood.
Marketers now closely monitor rival stations, with pump prices changing frequently to avoid losing customers in an increasingly aggressive market.
Motorists flock to the cheapest outlets
The impact of the price cuts has been immediate. Motorists are gravitating toward stations with the lowest prices, leaving outlets selling at higher rates struggling with reduced patronage.
Industry players confirmed that price sensitivity has returned to the market, with consumers no longer loyal to any particular brand but rather to the cheapest available fuel.
Marketers sell below cost to stay afloat
According to data from the Major Energies Marketers Association of Nigeria, the average landing cost of imported petrol currently stands at about N762.38 per litre, while Dangote’s ex-gantry price remains N699.
Despite the cost gap, importers and depot owners have been forced to adjust retail prices downward to compete, even as losses mount across the sector.
Reports indicate that both Dangote Refinery and fuel importers are absorbing losses running into billions of naira.
Operators insist the decision to slash prices is purely strategic. One marketer, who spoke anonymously, said the move had nothing to do with whether imported fuel was cheaper than locally refined petrol, according to a Punch report.
“This is simply about market share. Nobody wants to be left behind. There is no war with any refinery or marketer, but competition is intense,” the operator said.
Dangote’s price shock changed the market
The current price battle traces back to December 12, when Dangote Refinery stunned the market by cutting its petrol gantry price by N129, from N828 to N699 per litre.
Days later, Dangote Group President Aliko Dangote accused some marketers of attempting to keep pump prices artificially high and vowed to crash prices nationwide.
He declared that petrol should not sell above N740 per litre in December and January, warning that the group would use all available resources to enforce compliance.
Read also
Marketers back out of petrol supply deal with Dangote Refinery as fuel landing costs crash
The move triggered heavy patronage at MRS filling stations, with long queues forming in Lagos and Ogun as motorists boycotted more expensive outlets.
Market forces take over, IPMAN says
However, the advantage enjoyed by MRS is now fading as competitors respond with even lower prices.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said price competition would ultimately determine survival in the market.
“Patronage is determined by pricing. Nobody is regulating you; the market regulates itself.
Wherever fuel is cheaper, that is where customers will go,” he said, adding that marketers who refuse to adjust prices risk losing capital to accumulating bank interest.
Dangote expands access, defends supply strategy
Meanwhile, Dangote Refinery disclosed that PMS supply under its marketers’ arrangement began in October 2025 with 600 million litres, rising to 900 million litres in November and 1.5 billion litres in December.
In a statement signed by Group Chief Branding and Communications Officer Anthony Chiejina, the refinery said it now loads between 31 million and 48 million litres of petrol daily, depending on market demand.
Read also
Dangote Refinery begins direct petrol sales to independent marketers, bypasses depots owners
To boost participation, it reduced minimum purchase volumes to 250,000 litres and introduced a 10-day credit facility backed by bank guarantees.
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The refinery said these measures have improved liquidity, supported smaller operators and contributed to lower retail prices.
Dangote Refinery reaffirmed its commitment to transparency, reliable supply and a competitive downstream market, as Nigeria’s petrol price war shows no sign of cooling.
N710/litre: Petrol depot owners crash prices
Legit.ng earlier reported that petrol prices at Nigerian depots have dropped to their lowest levels in months as intense competition grips the downstream market, following the apparent collapse of the fuel supply agreement between the Dangote Petroleum Refinery and independent marketers.
Fresh findings show that depot owners have slashed ex-depot prices to as low as N710 per litre, a sharp reversal from the steep hikes recorded just weeks earlier.
In the first week of January 2026, depot owners sharply increased gantry prices after reports emerged that the Dangote Refinery had shut down its petrol production unit for maintenance.
Source: Legit.ng