Competition among petrol marketers along the Lagos–Ibadan Expressway has intensified, triggering fresh price reductions as filling stations move to attract and retain motorists.
Checks along the Mowe–Ibafo corridor in Ogun State over the weekend showed that pump prices for premium motor spirit had fallen below last week’s levels, with some outlets selling petrol for as low as N812 per litre, compared with about N839 previously.
Several stations were observed adjusting prices downward in response to growing market pressure. While some outlets sold petrol between N819 and N825 per litre, others hovered slightly higher, offering prices below the benchmark recommended by the Dangote Petroleum Refinery after its recent upward review of ex-depot prices.
The aggressive pricing reflects a widening price war among retailers, driven largely by shifting supply dynamics. Industry data indicate that the cost of importing petrol has declined, with recent estimates placing the average landing cost at about N724 per litre, below the current gantry price from local refining sources.
This development has created room for marketers to adjust pump prices, even as competition stiffens between stations supplied by imported products and those lifting fuel locally. A refinery official, who spoke anonymously, said many retailers offering lower prices were still sourcing petrol domestically, explaining that the refinery’s pricing structure accommodates statutory charges, allowing flexibility at the retail end.
The current trend contrasts sharply with earlier market conditions when imported petrol was more expensive, giving locally refined products a competitive edge and limiting price manoeuvring by independent marketers.
Meanwhile, some Dangote-affiliated retail outlets have also adjusted prices in response to nearby competitors, underscoring how location-based competition is shaping retail pricing decisions along major transport corridors.
Amid the unfolding price adjustments, the Dangote refinery has reiterated concerns over fuel distribution costs, warning that continued dependence on coastal delivery methods could drive pump prices close to N1,000 per litre. The company maintains that gantry loading remains the most cost-efficient option for sustaining price stability nationwide.
According to the refinery, ongoing investments in loading infrastructure – including a large-scale gantry facility operating round the clock are designed to improve supply efficiency and reduce logistics costs. The facility reportedly handles millions of litres of petrol and diesel daily.
The refinery also pointed to the broader impact of increased domestic refining, noting that local supply has helped lower diesel and petrol prices from previous highs, reduced reliance on imports, eased pressure on foreign exchange demand, and supported recent gains in the naira.
Industry analysts say the durability of the current price reductions will depend on several factors, including exchange rate movements, supply volumes, distribution costs and future pricing decisions by refiners and fuel importers.
