Competition in Nigeria’s downstream petroleum market has intensified, with several filling stations now selling Premium Motor Spirit below the N739 per litre benchmark set by the Dangote Petroleum Refinery.
Following Dangote’s December reduction of petrol prices from about N900 to N739 per litre, importers and depot operators have struggled to remain competitive, amid reports of rising losses. In response, many retailers have adjusted pump prices downward, in some cases selling below cost to retain market share.
A weekend market survey showed that some outlets were pricing petrol lower than stations officially aligned with Dangote’s pricing framework. Retail prices of between N735 and N738 per litre were recorded in parts of Lagos and Ogun states, as stations closely monitored rivals to avoid losing customers. Motorists were seen gravitating towards outlets offering the lowest prices, leaving higher priced stations with reduced patronage.
Industry data indicate that the average landing cost of imported petrol stood above N760 per litre, while Dangote’s ex gantry price remained at N699. Despite the margin pressure, importers and independent marketers reportedly slashed prices to stay relevant in an increasingly competitive environment.
Marketers say the pricing decisions are driven purely by market forces rather than the relative cost of imports, noting that survival now depends on volume turnover. Industry observers describe the situation as a full scale price war, with demand and supply determining outcomes.
The Dangote refinery said its expanded supply framework, including increased daily loading volumes, reduced minimum purchase requirements, and a short term credit facility, has improved market access and boosted locally refined petrol distribution. The refinery maintains that these measures are helping to moderate pump prices, reduce import dependence, and strengthen competition in the downstream sector.
