Fuel Prices May Drop to N800 as Fierce Price War Unfolds, Marketers Dump Dangote Refinery for Cheaper Imports Amid Falling Landing Costs and Market Competition
The battle for dominance in Nigeria’s downstream oil sector has intensified, with major marketers undercutting Dangote Petroleum Refinery’s ex-depot price of N825 per litre. This fierce competition could push fuel prices down to N800 per litre, according to industry experts.
The price war follows a sharp decline in the landing cost of imported Premium Motor Spirit (PMS), now at N774.72 per litre—N50.28 lower than Dangote’s loading price. Marketers are increasingly favoring imported fuel over locally refined products due to cost advantages, leading to a shift in market dynamics.
The Nigerian National Petroleum Company Limited (NNPC) recently reduced its pump price to N860–N880 per litre, triggering a wave of price adjustments among private marketers. As a result, private depots, including AA RANO, MENJ, and MRS TINCAN, have lowered their prices to between N830 and N832 per litre, further pressuring Dangote’s refinery to reconsider its pricing strategy.
Industry analysts predict that Dangote may be forced to slash its prices again to remain competitive, especially as private importers continue securing cheaper fuel. This shift has left many marketers unwilling to purchase from the refinery, with some struggling to sell their existing stock at minimal profit.
Oil and gas expert Olatide Jeremiah suggests that further declines in crude oil prices could drive PMS prices even lower. “With the current market trend, petrol may soon sell for N800 per litre,” he stated.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concerns over the frequent price fluctuations, calling for regulatory measures to stabilize the market. Despite full deregulation, PETROAN insists that price changes should only occur every six months to prevent industry-wide losses.
As competition tightens and prices continue to drop, Nigerians may soon see a further reduction in fuel costs, marking a major shift in the nation’s energy market.
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