The price war in Nigeria’s downstream oil sector has intensified, with some filling stations now selling petrol below the N739 per litre benchmark set by the Dangote Petroleum Refinery.
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This follows Dangote’s December price cut, which forced importers and depot owners to slash prices to avoid losing customers, even as many complain of mounting losses.
A weekend survey showed that several outlets are undercutting the Dangote-backed MRS stations. NIPCO sold petrol at N738 per litre, SAO at N735, Akiavic at N737, while an AP station in Mowe, Ogun State, dropped its price to N736.
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Retailers in the same locations now closely track competitors’ prices, as motorists flock to stations offering the cheapest fuel.
Industry data shows that the average landing cost of imported petrol is about N762 per litre, while Dangote’s ex-gantry price stands at N699. Despite the tight margins, marketers say the cuts are driven by competition, not cheaper imports. Operators admit they are simply trying to stay in business as patronage increasingly depends on price.
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The Dangote refinery said it has expanded supply to marketers, loading up to 48 million litres daily and easing access by reducing minimum purchase volumes and offering credit facilities. Marketers’ groups say the market is now regulating itself, warning that stations that refuse to adjust prices risk losing customers as interest charges pile up.
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