Nigeria’s fuel market is witnessing a new wave of aggressive competition, with independent fuel importers slashing prices and directly challenging the dominance of the Dangote Refinery, operated by Africa’s richest man, Aliko Dangote.
According to a recent report by Punch, importers such as Aiteo and Menj have driven ex-depot prices down to N815 per litre—undercutting Dangote’s N820 and the Nigerian National Petroleum Company (NNPC)’s N825.
This move has triggered a wider market response, leading several filling stations in Lagos and Ogun States to lower their pump prices below the typical Dangote-affiliated rates of N865–N875.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), praised the impact of market liberalization on pricing.
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“Depot owners are dropping their petrol prices… That is the beauty of the liberalization of the market,” Ukadike said, cautioning the federal government against banning petroleum imports, a move recently proposed by Dangote.
This pricing shift comes in the wake of a broader market shake-up initiated by the Dangote Refinery itself.
In early July, the refinery slashed its gantry price for Premium Motor Spirit (PMS) from N880 to N840, and subsequently to N820 per litre—moves that were initially meant to offer consumer relief and respond to geopolitical tensions like the Israel-Iran conflict that had previously led to price hikes.
However, the aggressive pricing strategies of independent marketers are now outpacing those of the refinery.
The ex-depot price war is reshaping dynamics in Nigeria’s downstream oil sector, pushing the entire fuel supply chain toward unprecedented levels of competitiveness.
Dangote, speaking at the Global Commodity Insights Conference in Abuja, had called for a ban on fuel imports to protect domestic refining.
He argued that the “Nigeria First” policy by President Bola Tinubu should apply to petroleum products as well. Nonetheless, marketers like Ukadike have maintained that a free and open market, combined with enhanced local refining capabilities, will better ensure price fairness and fuel availability.
This isn’t the first time Dangote and NNPC have clashed over market share. Earlier this year, both entities engaged in a fierce pricing war, which saw fuel prices drop from N1,200 to around N860 per litre—forcing other players to adjust pricing or absorb losses.
With independent importers now driving down costs further, analysts suggest that the Nigerian fuel market may be on the cusp of a longer-term shift toward competitive pricing—at least as long as market liberalization remains intact.
Image Credit: symfoni news
