Oil Marketers Dump NNPCL Franchise as Dangote Refinery Disrupts Fuel Market

By DAYO ADESULU
Lagos, Nigeria – A major shift is occurring in Nigeria’s petroleum sector as independent oil marketers are dropping their NNPCL franchise agreements in favor of private branding. This comes as the Dangote Petroleum Refinery slashes its petrol prices, offering a more competitive alternative to marketers.
🔹 Why Are Marketers Abandoning NNPCL?
With deregulation in full swing, oil marketers are looking for cheaper alternatives to stay profitable. Previously, many stations operated under the NNPCL brand to secure product supply. However, as Dangote Refinery now sells petrol at a lower price than the imported alternatives, marketers are switching to private brands to gain flexibility and better margins.
🔹 Price War: Dangote vs. NNPCL
The recent drop in ex-depot petrol prices from ₦950 to ₦890 per liter at Dangote Refinery has intensified competition, making it harder for NNPCL to hold onto its franchise partners. With independent marketers prioritizing affordability and profit, many are now rebranding their stations to buy fuel directly from Dangote and other private importers.
🔹 What Industry Experts Are Saying
According to Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN):
“Previously, marketers needed an NNPCL franchise to access fuel at subsidized rates. But with Dangote selling cheaper, stations are now rebranding to maximize profits and secure lower-cost products.”
Similarly, Akinola Ogunyolemi, Chairman of PETROAN Lagos State, confirmed:
“Most stations using the NNPCL logo were independent operators under franchise agreements. Now, with better offers from private companies, they are switching brands.”
🔹 What This Means for Consumers
As the market shifts, consumers may begin to see more competition-driven pricing adjustments at fuel stations, potentially leading to cheaper petrol prices in the near future.
🔹 Conclusion
The NNPCL franchise shake-up highlights a major shift in Nigeria’s downstream petroleum market. As the Dangote Refinery gains dominance, more marketers may rebrand their stations to take advantage of better pricing, reshaping the industry landscape.
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