The price war in Nigeria’s downstream oil sector intensified over the weekend as petrol retailers slashed pump prices below the Dangote Refinery’s benchmark rate of N739 per litre to gain a competitive edge.
The development comes weeks after Dangote Refinery reduced its ex-depot price to N699 per litre and fixed its retail price at N739 per litre at MRS filling stations nationwide, a move aimed at undercutting fuel importers and independent marketers.
Since December, Dangote petrol has enjoyed a price advantage, with most other retailers, including the Nigerian National Petroleum Company Limited (NNPCL), selling PMS between N815 and N840 per litre, depending on location.
However, fresh price adjustments in Lagos have seen some marketers go below Dangote’s rate. As of Sunday, NIPCO sold petrol at N738 per litre, SAO stations at N735, and Akiavic at N737. An AP filling station located beside an MRS outlet in Mowe, Ogun State, reduced its price to N736 per litre.
In contrast, petrol prices in Abuja remained significantly higher as of Monday morning. Retailers including NNPCL, Rano Oil, Empire Energy, NIPCO, AA Rano, and AYM Shafa were dispensing PMS at prices ranging between N815 and N839 per litre.
Industry observers say the latest reductions highlight increasing competition among marketers as they attempt to retain customers amid falling depot prices and shifting market dynamics.
Earlier, the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said that independent marketers were optimistic about improved supply conditions, noting that cheaper petrol could ease costs for consumers.
The ongoing price competition is expected to continue as marketers adjust to evolving supply patterns and pricing strategies in the deregulated fuel market.
