By Naomi Jeremiah

Competition in Nigeria’s downstream petroleum market has intensified as several filling stations now sell petrol below the N739 per litre price backed by the Dangote Petroleum Refinery.

Following Dangote’s December price cut from about N900 to N739 per litre, many importers and depot owners have struggled with losses. To stay competitive, some retailers have reduced pump prices even further. Over the weekend, stations like NIPCO, SAO, Akiavic and AP were observed selling PMS between N735 and N738 per litre, undercutting even MRS Oil, Dangote’s key retail partner.

Motorists are increasingly flocking to stations with the lowest prices, forcing nearby outlets to closely monitor competitors or risk losing customers. Industry data shows the average landing cost of imported petrol at about N762 per litre, meaning many marketers are selling below cost to retain market share.

Marketers say the price cuts are driven purely by competition, not cheaper imports. The Independent Petroleum Marketers Association of Nigeria noted that price now determines patronage, warning that marketers who fail to adjust risk losing customers while bank interest erodes their capital.

Dangote Refinery, meanwhile, says it has expanded access to locally refined petrol by lowering minimum purchase volumes, offering credit facilities, and increasing daily supply. The refinery insists these steps are boosting competition, reducing reliance on imports, and helping drive prices down nationwide.

As the price war continues, petrol now sells below N800 per litre in many locations, with market forces not regulation largely setting the pace.

Source: Punchng