Marketers Slash Fuel Prices, Undercutting Dangote’s Refinery

Petrol prices have fallen below the rates offered by the Dangote Petroleum Refinery, signaling heightened competition in Nigeria’s downstream oil market. This development comes amid calls by Aliko Dangote for a government ban on fuel importation to protect local refining.

Retailers in Lagos and Ogun states are now selling petrol for less than ₦860 per litre, while stations supplied by the Dangote refinery, including those operated by MRS and Heyden, maintain prices between ₦865 and ₦875. One outlet in Ogun State, identified as SGR, offered fuel at ₦847 per litre on Tuesday.

Depot prices also reflect a downward trend. While the Dangote refinery sold petrol at ₦820 per litre as of Tuesday, several private depots were selling at ₦815 or slightly higher, in a bid to stay competitive. Companies like Aiteo and Menj were among those offering reduced ex-depot prices.

Industry players say this price adjustment is a response to the Dangote refinery’s previous cuts, which had pushed importers to the brink of unprofitability. Now, many are undercutting Dangote in a bid to retain market share.

Confirming the price reductions, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the trend was a result of market forces at play. “Depot owners are dropping their prices, some to ₦815 or ₦817 while Dangote remains at ₦820. NNPC still sells at ₦825,” said Chinedu Ukadike, the association’s National Publicity Secretary.

He emphasized that this was a positive outcome of market liberalisation and warned against any government attempt to restrict fuel imports. “This is the benefit of an open market. No one should be barred from importing petroleum products. Refining locally will eventually stabilise pricing, but competition must be allowed.”

Meanwhile, concerns have been raised about the quality of imported fuel. However, IPMAN insists that the Nigerian Midstream and Downstream Petroleum Regulatory Authority is in place to enforce quality standards.

Aliko Dangote has raised alarm over what he described as “unfair competition” from importers, arguing that dumping of cheap and potentially substandard fuel is undermining local refiners. He stated that Nigeria’s domestic industry is at risk unless the government intervenes.

According to Dangote, some imported fuel, particularly from Russia, benefits from foreign subsidies or discounted crude, allowing it to be sold at prices well below local production costs. “This creates an uneven playing field,” he said, noting that fuel prices in Nigeria have dropped to as low as 60 cents per litre, lower than in oil-producing nations like Saudi Arabia.

He urged African governments to adopt protective measures similar to those implemented by the U.S., Canada, and the EU, warning that continued dumping could jeopardize investment in refining across the continent.

Dangote also pushed for the full implementation of the ‘Nigeria First’ policy in the petroleum sector, stressing the need to prioritize locally produced fuel over imports. “If we want to secure our refining industry and economy, we must protect domestic producers,” he stated.

However, marketers are pushing back, warning the government against adding petroleum products to the import prohibition list. They argue that banning fuel imports would stifle competition and contradict the principles of market liberalisation, which they say is already yielding benefits for consumers.