The price war in Nigeria’s downstream petroleum sector has intensified, with several filling stations now selling Premium Motor Spirit (PMS) below the N739 per litre price recommended by the Dangote Petroleum Refinery, deepening competition across the retail market.
Since the Dangote refinery cut petrol pump prices from about N900 to N739 per litre in December, importers and depot owners have complained of rising losses, as many were forced to sell below cost in a bid to remain competitive.
A weekend survey revealed that some filling stations are now selling PMS cheaper than MRS Oil, the marketer endorsed by the Dangote refinery to champion the price reduction. As of Sunday, NIPCO sold petrol at N738 per litre, SAO stations at N735, Akiavic at N737, while an AP filling station located beside an MRS outlet in Mowe, Ogun State, dropped its price to N736 per litre.
Industry observers noted that filling stations operating within the same locations now closely monitor rivals’ pump prices to avoid being undercut. Motorists, in turn, are increasingly patronising stations offering the lowest prices, leaving outlets selling at higher rates struggling to attract customers.
According to the Major Energies Marketers Association of Nigeria, the average landing cost of imported petrol stood at N762.38 per litre, while Dangote’s ex-gantry price remained N699. Despite this disparity, importers have continued to slash prices to compete with Dangote-backed outlets, even as reports suggest that both the refinery and importers are recording losses running into billions of naira.
Operators who spoke on condition of anonymity said the price cuts were driven purely by competition rather than cost advantages. They stressed that marketers were simply trying to maintain market share in an increasingly liberalised environment.
On December 12, the Dangote refinery jolted the market by slashing its gantry price by N129, from N828 to N699 per litre. Days later, Dangote Group President, Aliko Dangote, warned that some marketers planned to keep prices high despite the reduction and vowed to enforce the new pricing regime nationwide, with MRS selling at N739 per litre.
Following the rollout of the new pricing, motorists initially flocked to MRS filling stations in Lagos and Ogun states, leading to queues as customers boycotted outlets selling at higher prices. However, the trend is now shifting, with other marketers undercutting MRS prices to regain patronage.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers who refused to reduce prices risked losing customers while bank interest charges eroded their capital.
According to him, competition in the deregulated market is now driven strictly by price, with demand and supply determining where motorists buy fuel.
Meanwhile, the Dangote refinery disclosed that PMS supply under its marketers’ arrangement began in October 2025 with an offtake volume of 600 million litres, which rose to 900 million litres in November and further expanded to 1.5 billion litres in December. Since December 16, 2025, the refinery said it has consistently loaded between 31 million and 48 million litres of PMS daily, depending on market demand.
The refinery added that it had reduced minimum purchase volumes, introduced a 10-day credit facility backed by bank guarantees, and opened supply to all qualified marketers to improve distribution and enhance competition. These measures, it said, have supported wider access to locally refined petrol and contributed to lower retail prices compared with imported alternatives.
Reaffirming its commitment to transparency and market stability, the Dangote refinery said it would continue to collaborate with regulators and industry stakeholders to support domestic refining, conserve foreign exchange, moderate fuel prices, and strengthen Nigeria’s long-term energy security.
