Petrol Prices Drop Below Dangote Refinery Rate as Marketers Slash Costs

Petrol importers have begun selling the product below the price offered by Dangote Petroleum Refinery, sparking a fresh wave of competition in the market. This development comes as Aliko Dangote, President of Dangote Group, calls on the Federal Government to halt fuel importation.

Investigations revealed that certain filling stations in Lagos and Ogun states now offer petrol for under ₦860 per litre, whereas Dangote’s partners—including MRS and Heyden—sell it between ₦865 and ₦875. For instance, SGR, a station in Ogun, listed its price at ₦847 as of Tuesday.

Industry insiders confirmed that many depots are now selling petrol at rates cheaper than Dangote’s. The refinery currently offers petrol at ₦820 per litre, while other depots like Aiteo and Menj are reportedly selling at ₦815 per litre, according to data from Petroleumprice.ng.

Importers, aiming to stay competitive, have adjusted their pricing downward in response to Dangote Refinery’s earlier pricing strategy. Many previously expressed concerns about potential losses as the refinery’s 650,000 barrels-per-day operation ramped up its local supply and price cuts.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed the price drops, with spokesperson Chinedu Ukadike stating that while NNPC’s rate remains ₦825, some depot owners are now selling at ₦815 or ₦817.

Ukadike highlighted this as a benefit of a deregulated market and urged President Bola Tinubu not to restrict fuel imports. He stressed that open competition encourages fair pricing and supports local refining efforts.

In response to concerns about substandard fuel imports, Ukadike assured that the Nigerian Midstream and Downstream Petroleum Regulatory Authority was actively monitoring product quality.

Meanwhile, Dangote expressed disapproval of the growing price competition, describing it as unfair and detrimental to local refining. He reiterated the need for protective measures, urging the implementation of the ‘Nigeria First’ policy in the petroleum sector—similar to protections offered by the U.S., Canada, and EU to their domestic industries.

Dangote alleged that subsidised and potentially toxic fuel—especially from Russia—is being dumped in Africa at below-cost prices, undermining local production. He claimed that these products wouldn’t meet safety or environmental standards in Western countries.

He argued that such practices create an unbalanced market where Nigerian refiners struggle to remain viable, even selling at below production costs.

Despite his plea, some marketers have rejected the idea of banning fuel imports under the Nigeria First policy, advocating instead for a competitive and open fuel market that empowers consumers and supports industry-wide efficiency.