In a surprising move that could reshape Nigeria’s fuel market dynamics, independent and major petrol marketers have begun selling petrol at prices lower than those offered by the Dangote Petroleum Refinery. This development has sparked a fresh wave of competition and raised questions about the long-term pricing strategy of the newly operational refinery.
Multiple filling stations across key cities like Lagos, Abuja, and Port Harcourt have reportedly dropped their pump prices by several naira per litre, undercutting the Dangote Refinery’s benchmark price. Industry experts say the price war is being driven by a combination of factors, including access to cheaper imported refined products, aggressive marketing tactics, and efforts by marketers to retain or grow their customer base amid rising fuel costs.
The Dangote Petroleum Refinery, which officially began fuel distribution earlier this year, was expected to bring stability and lower prices to the downstream sector. However, some marketers are reportedly sourcing petrol from international suppliers at rates more competitive than Dangote’s domestic pricing, despite logistical and importation hurdles.
Reacting to the development, a spokesperson for the Dangote Group said the refinery is committed to maintaining global standards and ensuring a sustainable supply chain. “Our focus remains on long-term value, quality assurance, and national energy security,” the statement read.
Consumers have welcomed the price cuts, with many expressing hope that the competition will drive down fuel prices even further and reduce the burden of transportation costs.
Analysts warn, however, that this new wave of competition could lead to short-term price volatility. Regulatory agencies are also expected to weigh in as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) monitors the situation to prevent market distortion or unfair practices.
As the battle for market dominance unfolds, all eyes remain on how the Dangote Refinery will respond in the face of this unexpected pricing challenge.
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