BREAKING: Dangote Announces Major Petrol Price Reduction Amid Price War With NNPC

Dangote has announced a major petrol price reduction amid a price war with NNPC.

NewsOnline Nigeria reports that the fierce competition in Nigeria’s downstream oil sector has intensified as the Dangote Petroleum Refinery discreetly slashed its petrol loading price from N825 per litre to N815 per litre.

The price adjustment, which took effect on Thursday, March 13, was met with enthusiasm by oil marketers, prompting many to bypass private depot owners and source their supplies directly from the refinery.

Industry analysts predict that this N10 per litre reduction could trigger a response from private fuel depots, compelling them to lower their prices in a bid to remain competitive.

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Meanwhile, the landing cost of imported petrol has also dropped to N774.72 per litre, marking a N50.28 decrease from the previous N825 per litre at Dangote’s loading gantry. Marketers suggest that if this trend continues, retail pump prices of Premium Motor Spirit, PMS, popularly known as petrol, could decline to around N800 per litre.

The ongoing price adjustments have intensified competition, with many retail marketers favoring imported petrol over locally refined products due to cost advantages, fueling an all-out price war in the sector.

“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,” the National Publicity Secretary of the Independent Marketers Association of Nigeria, IPMAN, Chief Ukadike Chinedu, stated.

In a strategic move to strengthen its market position, the 650,000 barrels-per-day refinery further reduced its petrol loading price to N815 per litre, effective Thursday.

However, with the N10 levy imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, the final cost to buyers rises to N825 per litre.

Reacting to the price adjustment, private depot owners in Lagos have also revised their rates downward, bringing their loading price to N825 per litre, a drop from the N830 per litre charged earlier in the week.

A marketer, speaking anonymously due to lack of authorization, confirmed the development, stating, “It is true, I sighted the PFI, N815 ex-depot, N825 including NMDPRA N10. Marketers are selling N826– N830.”

A second oil marketer confirmed the recent petrol price reduction, attributing it to competitive market dynamics.

Further market checks indicate that private depots have now adjusted their prices to align with the rate set by Dangote Petroleum Refinery. However, some depots have maintained slightly higher rates.

AA RANO and MENJ depots kept their loading prices unchanged at N830 per litre, while Bovas Depot sold at N826 per litre. WOSBAB set its price at N831 per litre, AITEO revised its rate from N832 per litre to N827 per litre, while Integrated Depot sold at N826 per litre and RAIN OIL Depot at N831 per litre.

The National Publicity Secretary of IPMAN, acknowledged that the price war was driven by the declining cost of imported petrol. He described the situation as the beauty of deregulation, explaining that Dangote Refinery, with its vast supply of refined petrol, is determined to maintain its market share, hence the price adjustment.

Despite these shifts, the landing cost of imported petrol has risen to N803.35 per litre from N774.82 per litre. However, this remains below the ex-depot price of Dangote’s petrol, according to the Major Energies Marketers Association of Nigeria, MEMAN.

Meanwhile, an official at Dangote Refinery, speaking anonymously, claimed unawareness of the new price change but affirmed that oil marketers had reported the adjustment.

“We currently don’t have any information about that, but we will try to clarify tomorrow. You can report what marketers told you, but we don’t have any information on that as I talk to you,” the official said.