Motorists queue at a filling station as petrol retailers slash pump prices below the Dangote refinery’s N739 per litre benchmark amid intensifying market competition.
Competition in Nigeria’s downstream petroleum market has intensified as several filling stations lowered the pump price of Premium Motor Spirit (PMS) below the N739 per litre benchmark set by the Dangote Petroleum Refinery.
The petroleum price cuts following Dangote refinery’s decision in December to slash petrol prices from about N900 to N739 per litre, forcing importers and retailers to adjust prices to remain competitive despite rising losses.
A survey over the weekend showed that some stations are now selling petrol cheaper than MRS Oil, Dangote refinery’s endorsed retail partner. NIPCO sold PMS at N738 per litre, SAO at N735, Akiavic at N737, while an AP station in Mowe, Ogun State, reduced its price to N736 per litre.
Retailers in the same locations are closely tracking rivals’ prices as motorists increasingly patronise outlets offering the lowest rates, leaving higher-priced stations struggling for customers.
According to the Major Energies Marketers Association of Nigeria, the average landing cost of imported petrol is N762.38 per litre, compared to Dangote’s ex-gantry price of N699. Despite this gap, importers have lowered prices to compete with Dangote-backed retailers.
The reductions were driven by market competition rather than the cost of imports, adding, “This is simply a strategy to gain market share.”
The price war began on December 12 when Dangote refinery cut its gantry price by N129. Dangote Group President, Aliko Dangote, later vowed to enforce nationwide pump prices below N740 per litre, warning against efforts to keep prices artificially high.
The spokesperson for the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said pricing now determines patronage, stressing that marketers who fail to adjust risk losing customers and capital.
Meanwhile, the Dangote refinery said it has expanded PMS supply volumes since October 2025 and introduced flexible purchase terms to support wider participation and competitive pricing in the downstream market.
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