The ongoing price competition in Nigeria’s downstream oil sector took a new turn on Thursday as Dangote Petroleum Refinery implemented a subtle price reduction at its loading gantry, lowering the cost of its petrol from N825 per litre to N815 per litre.
The revised pricing strategy was reportedly well received by oil marketers, prompting them to bypass private depot operators and source their products directly from the refinery. This N10 per litre reduction is expected to trigger competitive adjustments from private fuel depots, which may lower their prices to retain market share.
Earlier in the week, reports indicated that the landing cost of imported petrol had dropped to N774.72 per litre, raising expectations of a potential decline in pump prices to around N800 per litre. Industry stakeholders noted that the previous loading cost of N825 per litre at Dangote Refinery had prompted some retail marketers to prefer imported fuel due to its lower price.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, highlighted that crude oil prices play a crucial role in fuel pricing. “A further decline in crude oil prices will likely lead to a reduction in petrol prices, possibly to around N800 per litre,” he stated.
In an apparent move to maintain its market position, Dangote Refinery, which has a production capacity of 650,000 barrels per day, reduced its loading price to N815 per litre on Thursday. With the additional N10 levy charged by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the final cost stands at N825 per litre.
Following this adjustment, private depots in Lagos have also lowered their prices, aligning with the refinery’s new rate. Some depots, including AA RANO and MENJ, maintained their prices at N830 per litre, while Bovas reduced its rate to N826, WOSBAB adjusted to N831, AITEO lowered its price to N827, and Integrated Depot matched the N826 rate. Rainoil also adjusted its price to N831 per litre.
Commenting on the development, IPMAN’s spokesperson, Ukadike Chinedu, described the situation as a classic case of market competition under deregulation. “Dangote has millions of litres in stock and wouldn’t want external forces to take over its market share. The price reduction is a strategic move,” he explained.
Meanwhile, data from the Major Energies Marketers Association of Nigeria (MEMAN) showed that the landing cost of petrol had increased to N803.35 per litre from N774.82 per litre. Despite this increase, the imported product remains slightly cheaper than Dangote Refinery’s ex-depot price.
When contacted, an official from Dangote Refinery, who requested anonymity, stated that they were not aware of the latest price change but advised that reports from marketers could be referenced until official clarification is provided.
