Dangote Faces Price Pressure as Petrol Retailers Offer Cheaper Pump Rates
Nigeria’s downstream petroleum sector is witnessing an intensifying price war as independent petrol retailers begin selling Premium Motor Spirit (PMS) below the benchmark price set by Dangote Petroleum Refinery, a development that could reshape competition and consumer spending in the market.
Since Dangote Refinery announced a significant cut in its petrol price to N739 per litre, a number of retail outlets have responded by pricing fuel even lower, a move aimed at attracting cost-conscious motorists. According to a recent survey reported by The PUNCH, several filling stations are now offering petrol at rates beneath Dangote’s quoted price, signaling fierce competitive dynamics at the pump.
At the weekend, independent operators were recorded selling PMS below Dangote’s rate in multiple states. NIPCO was observed at N738 per litre, SAO filling stations at N735, and Akiavic outlets at N737. In Ogun State, an AP station near an MRS outlet reduced its price to N736 per litre, just below the Dangote benchmark.
Industry analysts say the trend reflects growing pressure on marketers to protect market share as Dangote’s aggressive pricing reshapes overall cost expectations. Retailers who traditionally import or source petrol from private depots are now cutting prices at a loss to remain relevant.
The price undercutting comes in the wake of Dangote’s continued adjustments over recent months. The refinery has regularly reviewed its pricing structure in a bid to increase affordability for Nigerians, although critics argue that sustained competitive pricing must coincide with wider distribution networks to deliver real relief.
Moreover, Energy experts have weighed in on the broader implications of the unfolding fuel price dynamics. Professor Wumi Iledare, Emeritus Professor of Petroleum Economics, described Dangote’s pricing as a market disruptor but cautioned that artificially low benchmarks could distort normal commercial operations if not managed carefully by regulators and sector stakeholders.
As the price war continues, economists predict heightened volatility in retail fuel pricing and urge a coordinated strategy between government regulators, refineries, and marketers to ensure long-term stability in Nigeria’s petrol market.
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