By Obinna Uballa
Nigeria’s downstream petroleum market has plunged deeper into a price war as several filling stations across the country slashed the pump price of Premium Motor Spirit (PMS) below the N739 per litre benchmark set by the Dangote Petroleum Refinery, even at the risk of incurring losses.
The development comes weeks after the Dangote refinery reduced petrol prices from about N900 to N739 per litre in December, a move that has squeezed importers and depot owners and forced many marketers to sell below cost in a bid to remain competitive.
A survey conducted over the weekend showed that some retail outlets are now selling petrol cheaper than MRS Oil, the primary retail partner designated by the Dangote refinery to champion the price reduction. As of Sunday, NIPCO sold PMS at N738 per litre, SAO outlets dispensed at N735, Akiavic at N737, while an AP filling station beside an MRS outlet in Mowe, Ogun State, dropped its price to N736 per litre.
Findings revealed that filling stations in the same locations now closely monitor one another’s pump prices to avoid being undercut, with motorists flocking to outlets offering the cheapest rates and leaving higher-priced stations struggling for patronage.
According to the Major Energies Marketers Association of Nigeria (MEMAN), the average landing cost of imported petrol stood at N762.38 per litre, while Dangote’s ex-gantry price remained N699. Despite the gap, importers have continued to adjust pump prices downward to compete with Dangote-backed outlets.
Industry sources said both Dangote and fuel importers are currently absorbing losses running into billions of naira. Marketers who spoke with Punch Newspaper said the price cuts were driven purely by competitive pressure rather than cost advantages.
“This is not about whether imported fuel is cheaper or not. It is simply a market strategy to retain customers,” one operator said on condition of anonymity. “We are not at war with any marketer or refinery, but nobody wants to be left behind.”
On December 12, the Dangote refinery shocked the market by slashing its gantry price by N129, from N828 to N699 per litre. Days later, Dangote Group President Aliko Dangote accused some marketers of plotting to keep prices artificially high and vowed to enforce a nationwide pump price ceiling of N740 per litre.
“We are going to use whatever resources we have to crash the price,” Dangote had said. “For December and January, we don’t want petrol sold above N740 nationwide.”
As MRS filling stations in Lagos, Ogun and other states began selling petrol at N739 per litre, motorists boycotted outlets selling at higher prices, leading to long queues at MRS stations. However, the trend has since shifted, with several marketers now undercutting MRS prices to attract customers.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers who failed to reduce prices risked losing customers and facing mounting bank interest charges.
“Competition is now driven by price. Nobody is regulating you; the market will regulate itself,” Ukadike said. “Wherever fuel is cheapest, that is where motorists will go.”
He added that once Dangote cut its gantry price to N699, marketers had little choice but to adjust pump prices downward or risk their capital being eroded by bank loans.
Meanwhile, the Dangote refinery said petrol supply under its marketers’ arrangement began in October 2025 with an offtake of 600 million litres, which rose to 900 million litres in November and expanded to 1.5 billion litres in December.
In a statement signed by its Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery said that since December 16, 2025, it has consistently loaded between 31 million and 48 million litres of PMS daily, depending on market demand.
To widen access and improve distribution efficiency, the refinery said it reduced minimum purchase volumes from two million litres to 250,000 litres and introduced a 10-day credit facility backed by bank guarantees. These measures, it said, were aimed at boosting liquidity, supporting smaller operators and reducing dependence on imported fuel.
Addressing the spike in petrol imports recorded in November, the refinery attributed it to import licences approved by the former leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which it said exceeded domestic demand.
The Dangote refinery reaffirmed its commitment to transparency, reliable supply and the development of a competitive downstream market, pledging continued collaboration with regulators and industry stakeholders to support domestic refining, conserve foreign exchange, stabilise prices and strengthen Nigeria’s long-term energy security.
