Importers Slash Petrol Prices Below Dangote Refinery Amid Fuel Policy Clash
By DAYO ADESULU
Importers Slash Petrol Prices Below Dangote Refinery Amid Fuel Policy Clash
Nigeria’s petroleum market has entered a fierce price war as independent fuel importers slash petrol prices below Dangote Refinery’s prices, intensifying a high-stakes debate over local refining, import bans, and fair competition.
Importers Slash Petrol Prices Below Dangote as Refinery Stays Competitive
Independent filling stations across Lagos and Ogun States are now selling petrol at ₦815–₦847 per litre, undercutting Dangote’s gantry price of ₦820 per litre. Marketers at the SGR station in Ogun were offering petrol at ₦847 per litre, while Dangote-affiliated retailers such as MRS, Heyden, and others sell between ₦865 and ₦875 per litre. Bangalore depots like Aiteo and Menj list prices at ₦815 per litre.
These importers slash petrol prices significantly reduced their ex-depot prices to remain viable after Dangote slashed its petrol prices—first from ₦890 to ₦825 and later down to ₦815 per litre—triggering widespread market adjustments.
- Dangote Refinery Has Enough Petrol to Meet Nigeria’s Needs, Says Aliko Dangote
- https://www.thecheernews.com/dangote-says-tinubus-policies-are-reviving-the-private-sector/
Dangote’s Strategy: Price Reductions Trigger Industry Upheaval
Starting February 2025, Dangote Petroleum Refinery implemented two major ex-depot price reductions—cutting from ₦890 to ₦825, then further to ₦815 per litre. These moves aimed to provide affordable fuel for Nigerians and support President Tinubu’s economic policies. However, they also inflicted heavy losses on importers, with estimates of ₦32 billion lost in revenue for Dangote alone and daily losses of ₦2.5 billion industry-wide.
By April, Dangote had further reduced pump prices by ₦30 per litre, enabling partner retailers to bring retail rates down significantly—Lagos stations dropped to ₦890 from ₦920, while prices across other regions followed suit.
Battle Over Imports: Dangote Pushes for Ban; Marketers Push Back
At the Global Commodity Insights Conference, Aliko Dangote urged the Federal Government to extend the “Nigeria First” policy to refine petroleum products—calling for a ban on fuel imports, citing threats to domestic refining and unfair competition from subsidised or toxic imported products.
In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) opposes the ban. Its spokesperson, Chinedu Ukadike, argued that market liberalisation allows competition, protects consumer prices, and aligns with the Petroleum Industry Act. Marketers insist that imports are essential to check monopoly and ensure supply continuity.
Why This Price War Matters: Impacts Across the Sector
For Consumers
The price battle is yielding short-term relief—with some stations offering petrol under ₦860 per litre. But sustainability remains uncertain depending on how the market responds to policy changes.
For Importers
Aggressive Dangote pricing threatens imported fuel margins. Many importers slash petrol prices below landing costs to compete, leading to mounting losses and operational distress.
For Dangote Refinery
The company’s pricing strategy demonstrates its firm belief in self-reliance, but persistent importers and regulatory pushback strain its efforts to dominate the domestic fuel market.
For Policymakers
The clash raises urgent questions around how to balance competition, protect domestic refining, enforce fuel quality standards, and avoid monopolistic concentration under the Nigeria First policy.
Market Snapshot & Price Comparison
| Supplier | Ex-Depot Price (₦/L) | Pump Price (₦/L) |
|---|---|---|
| Importers (Aiteo, Menj) | 815 | 815–847 (varied by depot) |
| Dangote Refinery | 820 | 865–875 (partner stations) |
| NNPC | ~825–890 | Around 890 |
| Others | ~815–825 | ~815–865 |
Looking Ahead: What Comes Next
- Dangote recently withdrew a lawsuit seeking to nullify fuel import licences, signaling potential retreat or recalibration in the legal battle—though the case remains under review in September.
- Marketers continue to call for an open market, warning a fuel import ban could result in higher prices and fewer choices.
- Regulators like NMDPRA must enforce quality control on imported fuel to prevent substandard products from undermining safety and competition.
Conclusion: Importers Slash Petrol Prices Below Dangote—A Critical Turning Point
The ongoing fuel price war highlights the complexities of Nigeria’s downstream energy market. While Dangote’s aggressive pricing underscores local refining potential, importers slash petrol prices reflects a broader domestic need for competition and affordability.
As debates intensify over fuel policy, import bans, and market fairness, the core challenge lies in finding a balance: safeguarding local production without stifling competition, ensuring quality without sacrificing consumer benefits.
