Competition in Nigeria’s downstream petroleum sector has intensified as several filling stations have reduced the pump price of Premium Motor Spirit (PMS) below ₦739 per litre, the rate promoted by the Dangote Petroleum Refinery through its retail partner, MRS Oil.
Market checks over the weekend showed that some outlets adjusted prices downward to attract customers and remain competitive following Dangote Refinery’s recent price cuts. In some locations, stations selling cheaper petrol recorded higher patronage, while outlets with higher prices struggled to attract motorists.
Findings revealed that NIPCO sold PMS at about ₦738 per litre, SAO filling stations dropped prices to around ₦735, while Akiavic sold at roughly ₦737 per litre. An AP filling station near an MRS outlet in Mowe, Ogun State, was also observed selling petrol at ₦736 per litre.
Industry sources said filling stations now closely monitor competitors’ prices within the same areas, as motorists increasingly patronise outlets offering the lowest rates. The development has deepened price competition across the market.
According to the Major Energies Marketers Association of Nigeria, the average landing cost of imported petrol stands at about ₦762.38 per litre, while Dangote’s ex-gantry price is ₦699. Despite the cost difference, importers and depot owners have reportedly lowered pump prices to stay competitive, even as many absorb financial losses.
Marketers say the price cuts are driven by market realities rather than cheaper imports. One operator explained that the strategy is aimed at protecting market share in an increasingly competitive environment, stressing that the situation should not be viewed as a conflict among marketers or refiners.
The price war followed Dangote Refinery’s decision in December to slash its petrol gantry price by ₦129, from ₦828 to ₦699 per litre. Shortly after, President of the Dangote Group, Aliko Dangote, said efforts would be made to ensure petrol prices did not exceed ₦740 per litre nationwide during December and January.
As MRS stations in Lagos and Ogun states began selling petrol at ₦739 per litre, motorists reportedly boycotted outlets with higher prices, leading to queues at MRS stations. However, the trend has since shifted, with other marketers now selling below the ₦739 mark.
The Independent Petroleum Marketers Association of Nigeria said price competition has become the major factor influencing customer patronage. Its spokesperson, Chinedu Ukadike, noted that marketers who fail to reduce prices risk losing customers while interest on bank loans continues to mount.
Meanwhile, Dangote Refinery said its supply of PMS to marketers has expanded significantly since October 2025, with daily loading volumes ranging between 31 million and 48 million litres, depending on demand. The refinery also introduced measures such as reduced minimum purchase volumes and short-term credit facilities to support smaller operators and improve distribution.
The refinery maintained that recent increases in petrol imports were linked to earlier regulatory approvals rather than any shortfall in its supply capacity, reaffirming its commitment to stable supply, competitive pricing, and the development of a sustainable downstream petroleum market.
