Petrol Prices Drop as Importers Go Head-to-Head with Dangote Refinery

The Nigerian petrol market is witnessing a fresh wave of price competition as fuel importers slash their pump prices below the rates offered by the Dangote Petroleum Refinery.

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This development comes despite calls by the refinery’s President, Alhaji Aliko Dangote, for the Federal Government to halt petrol importation in order to protect local refining.

Findings by RoadKing.ng reveal that petrol is now being sold in some parts of Lagos and Ogun States at prices lower than Dangote’s distribution partners. While Dangote-linked stations like MRS and Heyden are selling between ₦865 and ₦875 per litre, several independent marketers have reduced prices even further.

One such outlet, SGR filling station in Ogun State, was selling at ₦847 per litre as of Tuesday. Depot operators confirmed that multiple importers have now pegged their ex-depot price below Dangote’s official rate.

According to verified market data from Petroleumprice.ng, Dangote Refinery’s price stands at ₦820 per litre, while some depots, including Aiteo and Menj, are offering petrol at ₦815 per litre.

Importers Fighting to Stay in Business

Industry sources say the price cuts are a survival strategy by importers, who earlier complained of heavy losses when the 650,000-barrel-per-day Dangote Refinery started aggressive price adjustments earlier this year.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed the trend:

“Depot owners are dropping their petrol prices. Some are selling at ₦815, some at ₦817, while Dangote is still ₦820. NNPC hasn’t dropped its price yet and is still selling at ₦825.”

Ukadike defended the competitive pricing as the true essence of market liberalisation, warning against Dangote’s calls for a ban on imports.

“This is the beauty of liberalisation. No one should be stopped from importing petroleum products. Competition ensures fair pricing, while local refining will stabilise the market in the long term,” he stated.

Dangote Calls for Government Protection

Alhaji Aliko Dangote has taken a different stance, warning that continued importation is undermining Nigeria’s refining industry. Speaking at a recent petroleum regulatory event in Abuja, he urged President Bola Tinubu to extend the “Nigeria First” policy to the petroleum sector.

“In the U.S., Canada, and the EU, domestic refiners are protected from unfair competition. Nigeria must do the same. Our local production is being undercut by cheap, sometimes toxic imports that would never pass quality checks in Europe,” Dangote said.

He further alleged that some importers are bringing in discounted Russian petroleum products, which depress local prices to unsustainable levels.

“This dumping is making Nigerian petrol even cheaper than Saudi Arabia’s, despite us refining our own crude. If this continues, local refiners cannot survive,” he warned.

Regulation and Safety Concerns

Addressing fears of substandard fuel entering the Nigerian market, Ukadike assured that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is actively monitoring imports to prevent unsafe or toxic fuel from being sold to consumers.

Despite Dangote’s calls for a ban, most marketers have urged the Federal Government to maintain an open market. They believe that competition rather than restrictions will ensure affordable fuel prices and keep the industry sustainable.

RoadKing.ng Analysis:

This price war signals a defining moment in Nigeria’s fuel market. On one hand, consumers are benefiting from lower prices at the pump. On the other, the long-term viability of local refining especially Dangote’s $20 billion refinery remains in question if import prices continue to undercut domestic supply.