Fuel Price Competition Intensifies as Dangote Refinery and Depot Operators Slash Rates
Nigeria’s downstream petroleum sector is witnessing heightened competition as Dangote Refinery and private depot operators engage in a series of price adjustments, though consumers have yet to see significant savings at the pump.
Dangote Refinery initiated the latest round of reductions by lowering its ex-depot price to ₦828 per litre from ₦877, representing a 5.6% decrease. The adjustment, which took effect on Friday according to Petroleumprice.ng, marks the refinery’s second major price revision in three months.
In swift response, major depot operators have implemented their own price cuts. Aiteo, Bovas, and Eterna reduced their rates to ₦850, ₦848, and ₦870 per litre respectively. Other significant players including AIPEC, Ardova, Integrated, and NIPCO followed suit with adjustments ranging between ₦868 and ₦870 per litre.
Despite these wholesale reductions, retail prices remain steady at ₦920 per litre across major filling stations, including Dangote retail partners MRS, Ardova, TotalEnergies, Heyden, Techno Oil, and Sunbeth. Industry participants cite market volatility as the primary reason for maintaining current retail prices.
The competitive environment has raised concerns among depot marketers, who claim the price war is pushing some operators toward unprofitable operations. “Anyone selling below ₦920 is selling at a loss,” one marketer told Daily Sun, noting that the refinery’s ₦49 per litre price difference is significantly impacting profit margins.
Adding to market uncertainties, the Federal Government’s proposed 15% import tariff on petrol has drawn criticism from industry experts. Tanya Stepanova of S&P Global Commodities Insights highlighted Nigeria’s continued dependence on imports during a MEMAN webinar, while MEMAN Executive Secretary Clement Isong warned about potential negative impacts on low-income households and small businesses.
In related developments, Dangote Refinery has increased its Liquefied Petroleum Gas (LPG) depot price to ₦930 per kilogram from ₦840, an 11% rise implemented within a week, prompting adjustments throughout the retail chain.
The ongoing price competition, while suggesting progress toward local market control, has yet to translate into meaningful savings for consumers who continue to pay ₦920 per litre at retail pumps. The situation remains fluid as market players navigate competitive pressures while maintaining operational viability.
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