The ongoing price war in Nigeria’s oil downstream sector has intensified, with petrol retailers reducing their fuel prices to gain a competitive edge. Recently, Dangote Refinery set a benchmark price of N739 per liter, which led to other marketers and importers trying to stay competitive. The move followed Dangote’s decision to slash its ex-depot price to N699 per liter, making its petrol retail price at MRS filling stations the cheapest in the market.
As a result, other petrol retailers, including the Nigerian National Petroleum Company Limited, have been selling fuel at higher prices, ranging from N815 to N840 per liter, depending on the location. However, in a bid to stay competitive, some fuel retailers have reviewed their prices to be lower than Dangote’s. For instance, NIPCO is selling petrol at N738 per liter, while SAO filling stations and Akiavic are offering it at N735 and N737 per liter, respectively.
In some areas, such as Mowe, Ogun State, an AP filling station has dropped its price to N736 per liter, which is lower than Dangote’s price. Nevertheless, in Abuja, fuel prices remain high, with most stations selling petrol between N815 and N839 per liter. The Independent Petroleum Marketers Association of Nigeria has stated that its members are favorable to the current market situation, despite the cheaper petrol prices.
The price war in Nigeria’s oil downstream sector began last year, with Dangote Refinery’s entry into the market. The company’s large refining capacity and strategic location have enabled it to offer competitive prices, putting pressure on other marketers and importers to reduce their prices. The development has led to a significant reduction in fuel prices in some areas, providing relief to consumers. However, the situation remains unpredictable, and it is unclear how long the price war will continue. As the market continues to evolve, it is likely that prices will fluctuate, and consumers will be watching closely to see how the situation unfolds.
