Dangote, depot operators in price war as petrol market heats up

Dangote, depot operators in price war as petrol market heats up

A fresh battle for control of Nigeria’s petrol market is brewing as Dangote Refinery and private depot operators cut prices in a bid to capture a larger share of the downstream sector.

This development comes amid warnings from energy experts that Nigeria is not yet ready for the proposed 15 per cent import tariff on petrol being considered by the Federal Government.

Over the weekend, the Dangote Petroleum Refinery reduced its gantry price of Premium Motor Spirit (PMS), also known as petrol, from ₦877 to ₦828 per litre, representing a 5.6 per cent decrease. Data from Petroleumprice.ng indicated that the review took effect on Friday, marking Dangote’s second major price adjustment in three months as the company seeks to stabilise domestic supply.

Following the refinery’s move, several private depot owners — including Aiteo, Bovas, and Eterna — also adjusted their gantry prices to remain competitive. As of Sunday, Aiteo sold at ₦850, Bovas at ₦848, and Eterna at ₦870 per litre, while AIPEC, Ardova, Integrated, and NIPCO sold between ₦868 and ₦870 per litre.

Despite the downward reviews, retail pump prices have remained unchanged, averaging ₦920 per litre across major filling stations such as MRS, Ardova, TotalEnergies, Techno Oil, Heyden, and Optima.

Some marketers at Apapa depots, who spoke anonymously, described the current market as “volatile,” warning that selling below the prevailing average could push many operators into losses. They claimed that Dangote’s reduced ex-depot price had already strained profit margins, forcing many dealers to adjust prices merely to stay afloat.

Meanwhile, concerns are growing over the Federal Government’s plan to impose a 15 per cent import tariff on petroleum products.

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At a recent webinar hosted by the Major Energies Marketers Association of Nigeria (MEMAN), Tanya Stepanova, Research Director for Fuels and Refining at S&P Global Commodities Insights, cautioned that Nigeria remains partly dependent on imports to meet domestic demand, despite Dangote’s ongoing output.

She noted that some petrol imports may not be captured in official trade data due to shipments routed through Togo’s offshore Lome, where smaller cargoes evade detection.

On his part, MEMAN’s Executive Secretary, Clement Isong, warned that introducing a 15 per cent tariff could hurt low-income households and small businesses if not carefully implemented. He called for an evidence-based policy debate and regular publication of open-market pricing data to promote transparency and prevent market manipulation.

Isong argued that while tariffs could help local refiners recover costs and stay competitive, they might also distort the market by squeezing smaller importers and raising consumer prices.

He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen oversight and consider a phased or conditional implementation of tariffs, tied to verified increases in local production capacity.

Dangote, depot operators in price war as petrol market heats up