Petrol Price War Intensifies as Oil Marketers Insist No Station Undercuts Dangote
By SAMUEL MOBOLAJI
Oil marketers have dismissed reports that some retail outlets are selling petrol cheaper than the ₦739 per litre benchmark set by Dangote Petroleum Refinery, describing such claims as speculation.
According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), only MRS filling stations, affiliated directly with Dangote Refinery, currently sell at the official ₦739 price nationwide. This, they argue, explains the long queues at MRS outlets compared to other stations where prices range between ₦770 and ₦780 per litre.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, said Nigerians’ preference for cheaper fuel is evident in the congestion at MRS stations.
He insisted that if any other marketer were selling below Dangote’s price, the queues would be longer there.
He described reports of cheaper sales as speculation driven by “air-conditioned and hotel room writers.” Some reports last week suggested a “price war” in the downstream sector, with a few outlets allegedly selling petrol at ₦735–₦738 per litre. But marketers insist such practices are unsustainable, given rising logistics and operational costs.
Retail operator Edwin Ogah noted that while some marketers may temporarily sacrifice margins to retain market share, this is not widespread or sustainable for long.
Dangote Refinery recently reduced its gantry price from ₦828 to ₦699 per litre, effective December 11, 2025, enabling retail sales at ₦739 per litre through MRS stations.
The move was hailed as a milestone in efforts to stabilise Nigeria’s downstream petroleum market and deliver affordable fuel to consumers. Aliko Dangote assured that the ₦739 price would be enforced nationwide, warning against “unscrupulous operators” attempting to create artificial scarcity.
The refinery also introduced flexible purchase terms, lowering the minimum order from 500,000 litres to 250,000 litres and offering a 10-day credit facility backed by bank guarantees.
Marketers further stressed that locally refined petrol offers superior quality compared to imports, citing stricter process controls and tailoring to Nigerian climatic conditions.
Ogah explained that locally refined fuel burns cleaner, improves engine performance, and reduces maintenance issues.
Ukadike added that with Dangote now supplying about 90% of Nigeria’s petrol, concerns about poor-quality imports are largely obsolete.
He projected that once other refineries like BUA and NNPC come onstream, oversupply will not be a problem, though a competitive price war may emerge, with excess products exported to other African markets.
The refinery’s pricing strategy has reshaped Nigeria’s fuel market, forcing marketers to balance affordability with sustainability. While consumers benefit from lower pump prices, industry players warn that prolonged price suppression could erode margins and destabilise smaller operators.
For now, Dangote Refinery remains the price leader, with its ₦739 benchmark setting the tone for Nigeria’s downstream sector and redefining competitive dynamics in Africa’s largest fuel market.
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