Fuel Price Battle: Retailers Sell Petrol Below Dangote Refinery’s N739/Litre

The competition in Nigeria’s petroleum sector has intensified, with some retail outlets now selling Premium Motor Spirit (PMS) below the N739 per litre recommended by Dangote Petroleum Refinery.

Since the Dangote refinery reduced petrol pump prices from around N900 to N739 in December, many importers and depot owners have reported losses. To remain competitive, several operators have had to sell petrol at rates below their landing costs.

A weekend survey showed that some filling stations now offer PMS at lower prices than MRS Oil, the primary partner supporting the Dangote price cut. NIPCO sold PMS at N738 per litre, SAO stations at N735, and Akiavic at N737, while an AP station in Mowe, Ogun State, dropped prices to N736 per litre. Filling stations in the same area closely monitor competitors’ pricing to avoid losing customers. Motorists are flocking to the outlets offering the cheapest rates, leaving higher-priced stations struggling.

According to the Major Energies Marketers Association of Nigeria, the average landing cost of petrol is N762.38 per litre, while Dangote’s ex-gantry price is N699. Despite this, importers adjusted pump prices to remain competitive with Dangote-backed MRS.

Operators stressed that the price reductions are a market strategy to maintain market share, not a reflection of whether imported petrol is cheaper. “This is about strategy, not a war against any marketer or refinery,” an operator said on condition of anonymity.

The Dangote refinery shocked depot owners in December by cutting the gantry price from N828 to N699 per litre. The Group President, Aliko Dangote, had warned marketers against maintaining higher pump prices and directed MRS stations to sell at N739 per litre.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) noted that competition is now driven by pricing. Marketers who fail to adjust risk losing customers, while those keeping up with competitive pricing protect their capital from mounting bank interest.

Many filling stations are now selling petrol below N800 per litre as the price war continues.

Dangote Refinery stated that it began supplying PMS to marketers in October 2025 with an offtake volume of 600 million litres, which rose to 900 million litres in November and 1.5 billion litres in December. The refinery reduced minimum purchase volumes and introduced a 10-day credit facility to enhance liquidity, support small and medium operators, and boost domestic product usage.

The refinery also clarified that the spike in petrol imports in November was due to import licensing approvals exceeding domestic demand and not related to its production capacity. It reaffirmed its commitment to reliable supply, competitive pricing, and collaboration with regulators to strengthen Nigeria’s downstream petroleum market.