Nigeria’s downstream oil market has been thrown into a fierce price war as petrol stations slash pump prices by up to ₦100 per litre. The cuts follow Dangote Petroleum Refinery’s sharp reduction in depot prices and the rollout of ₦739-per-litre fuel at MRS stations across Lagos and Ogun states.
Motorists have begun shunning outlets selling petrol above ₦800 per litre, forcing competitors to cut prices aggressively, even at significant losses.
The disruption began after Dangote Refinery slashed its gantry price by ₦129, from ₦828 to ₦699 per litre. Days later, MRS stations, Dangote’s retail partner, began selling petrol at ₦739 per litre. The move triggered long queues and immediate shifts in consumer behaviour, with drivers flocking to cheaper outlets and abandoning higher-priced stations.
Checks across Lagos and Ogun showed a rapid response from competing marketers. Stations that sold petrol near ₦900 last week now sell below ₦800. In Ogun, SGR dropped prices to ₦750, Petrocam to ₦785, while Mobil outlets along the Lagos-Ibadan Expressway sold at ₦780. Other stations adjusted prices to between ₦799 and ₦890 per litre to stay afloat.
Industry sources say many stations are now selling below their cost of purchase, highlighting the intensity of the competition. A major marketer described the situation as “a serious threat” to traders nationwide, noting that the wide presence of MRS stations has amplified the pressure.
The Nigerian National Petroleum Company Limited has also cut prices, reducing pump rates from ₦875 to between ₦825 and ₦840 depending on location. However, with an estimated landing cost of ₦828 per litre, import-dependent marketers face mounting losses competing against Dangote’s cheaper locally refined fuel.
Market data suggests petrol importers could lose over ₦100 billion monthly due to the price cuts. Dangote Refinery itself is projected to lose about ₦91 billion in one month following the reduction, underscoring the scale of the standoff reshaping the sector.
Independent Petroleum Marketers Association of Nigeria said price now determines survival. Its spokesperson noted that stations refusing to adjust prices risk losing customers and capital to bank interest costs. The association confirmed a growing partnership with Dangote Refinery, which recently lowered its minimum petrol purchase to 250,000 litres, making it easier for independent marketers to buy directly.
Dangote Refinery reported that more than 1,000 fuel trucks now load petrol daily from its facility, describing itself as Nigeria’s new fuel distribution hub. The refinery also introduced a 10-day bank guarantee system to support continuous supply.
With competition intensifying and consumers gravitating toward cheaper fuel, analysts say the market is entering a decisive phase where pricing power, not size, will determine winners.
