Petrol Prices Drop as Importers Undercut Dangote Refinery with Cheaper Fuel

Petrol Cost Falls as Importers Challenge Dangote Refinery with Cheaper Fuel

A new gesture of vying is sparking up Nigeria’s petroleum sector as fuel importers drop petrol prices below those offered by the Dangote Petroleum Refinery. This development comes between the ongoing calls by the Dangote Group President for a ban on fuel importation to protect local refining efforts.

Recent checks disclosed that some filling stations in Lagos and Ogun States are now selling petrol for less than N860 per litre. This is cheaper than prices at outlets supplied by the Dangote refinery, such as Heyden, and MRS, which presently sell between N865 and N875 per litre. In Ogun State, a station called SGR has cut its pump price to N847 per litre.

Industry insiders assert that several importers have lowered their former-depot prices beneath Dangote’s N820 per litre. For example, major depots like Aiteo and Menj were selling at around N815 per litre as of Tuesday, according to data from Petroleumprice.ng.

This quarrelsome pricing is viewed as a survival strategy by importers who have struggled to compete following Dangote’s entry into the market and subsequent price reductions.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed the trend. While Dangote sells at N820 and the Nigerian National Petroleum Corporation (NNPC) at N825, several importers are selling petrol between N815 and N817.

Ukadike praised the ongoing competition as a positive outcome of market liberalization and urged against any move to restrict fuel importation.

“Nobody should be stopped from bringing in petroleum products,” he said. “An open market encourages fairness and helps regulate prices through local production.”

On the other hand, the Dangote Group argues that this price war is harmful to the local refining industry. The Group’s President insists that the flood of imported fuel undermines domestic refining efforts and discourages investment in local capacity.

He called on the government to adopt a “Nigeria First” policy in the petroleum sector, including banning fuel imports. According to him, some importers are dumping substandard and toxic fuel blends that would not pass quality checks in Europe or North America.

The Dangote President also accused some players of offloading discounted fuel, especially from Russia, at prices below local production costs, creating an uneven playing field.

Adduce examples from countries like the United States, Canada, and members of the European Union, he urged policy interventions to shield African refiners from unfair competition.

However, marketers and other downstream stakeholders remain opposed to import bans, arguing that open competition is crucial for stabilising prices and maintaining consumer access until Nigeria’s refining capacity fully matures.

For now, Nigerian consumers’ arebenefiting from lower petrol prices at the pump. But with tensions rising between local refiners and fuel importers, the battle for Nigeria’s fuel market future is far from over.

Credit: Goldennewsng