Competition in Nigeria’s downstream petroleum sector has intensified, with several filling stations now selling Premium Motor Spirit (PMS) below the N739 per litre benchmark set by the Dangote Petroleum Refinery, despite the risk of mounting losses.
The fresh round of price cuts follows Dangote refinery’s decision in December to slash pump prices from about N900 to N739 per litre, a move that has put severe pressure on fuel importers and depot owners and forced many marketers to sell below cost to stay in business.
A weekend survey showed that some outlets are now offering petrol at prices lower than those of MRS Oil, the retail partner endorsed by Dangote to drive the price reduction. As of Sunday, NIPCO sold PMS at N738 per litre, SAO outlets at N735, Akiavic at N737, while an AP filling station beside an MRS outlet in Mowe, Ogun State, dropped its price to N736 per litre.
Findings indicate that filling stations operating in the same areas now closely track one another’s pump prices to avoid losing customers, as motorists increasingly patronise outlets offering the cheapest rates.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) show that the average landing cost of imported petrol is about N762.38 per litre, compared with Dangote’s ex-gantry price of N699. Even with the cost disadvantage, importers have continued to lower pump prices to compete with Dangote-backed outlets.
Industry sources said both the Dangote refinery and fuel importers are absorbing losses running into billions of naira. Marketers who spoke to Punch Newspaper said the price cuts were driven by competition rather than cost efficiency.
“This is not about whether imported fuel is cheaper. It’s about staying relevant in the market,” one operator said, speaking on condition of anonymity.
On December 12, Dangote shocked the market by cutting its gantry price by N129, from N828 to N699 per litre. Days later, Dangote Group President Aliko Dangote accused some marketers of attempting to keep prices high and vowed to enforce a nationwide pump price ceiling of N740 per litre for December and January.
As MRS outlets in Lagos, Ogun and other states began selling at N739 per litre, motorists boycotted higher-priced stations, leading to long queues at MRS filling stations. That advantage has since narrowed as rival marketers undercut MRS prices.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said price competition now dictates patronage in the market.
“Wherever fuel is cheapest, that is where motorists will go. The market will regulate itself,” Ukadike said, warning that marketers who fail to adjust prices risk losing customers and facing rising bank interest charges.
Meanwhile, the Dangote refinery said PMS supply under its marketers’ arrangement began in October 2025 with an offtake of 600 million litres, rising to 900 million litres in November and 1.5 billion litres in December.
In a statement signed by its Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery said it has been loading between 31 million and 48 million litres of PMS daily since December 16, 2025, depending on demand.
The refinery added that it reduced minimum purchase volumes and introduced a 10-day credit facility to widen access, support smaller operators and reduce dependence on imports.
Dangote reaffirmed its commitment to transparent pricing, steady supply and the development of a competitive downstream market, pledging continued collaboration with regulators and industry stakeholders to stabilise prices and strengthen Nigeria’s long-term energy security.
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