Competition in Nigeria’s downstream petroleum market has intensified, with several filling stations selling Premium Motor Spirit (PMS) at prices below the ₦739 per litre benchmark promoted by the Dangote Petroleum Refinery.Market checks over the weekend showed that some retailers have adjusted pump prices downward to remain competitive, amid mounting pressure triggered by Dangote refinery’s decision in December to cut petrol prices from around ₦900 to ₦739 per litre.
In Lagos and Ogun states, several outlets were observed selling petrol below the Dangote-backed MRS price. NIPCO stations dispensed PMS at ₦738 per litre, SAO sold at ₦735, Akiavic at ₦737, while an AP filling station near an MRS outlet in Mowe, Ogun State, dropped its price to ₦736 per litre.Industry sources said filling stations operating within the same locations now closely track competitors’ pump prices, as motorists increasingly patronise outlets offering the lowest rates. Stations selling at higher prices have reportedly struggled to attract customers.
According to data from the Major Energies Marketers Association of Nigeria, the average landing cost of imported petrol stood at ₦762.38 per litre, while Dangote refinery’s ex-gantry price remained at ₦699. Despite this gap, importers and depot owners have continued to slash prices in a bid to protect market share, even as losses mount.Operators familiar with the market dynamics said the ongoing price adjustments were driven largely by competition rather than cost advantages.
One marketer, who spoke anonymously due to the sensitive nature of pricing decisions, said retailers were simply responding to market realities to avoid being edged out.The price competition followed Dangote refinery’s reduction of its gantry price by ₦129 in December, from ₦828 to ₦699 per litre.
Shortly after, Dangote Group President Aliko Dangote vowed to ensure nationwide retail prices stayed below ₦740 per litre, warning against attempts to keep prices artificially high.Initially, the move led to fuel queues at MRS stations in Lagos and neighbouring states, as motorists boycotted outlets selling at higher rates.
However, the dynamics have since shifted, with rival stations now offering even lower prices.The Independent Petroleum Marketers Association of Nigeria (IPMAN) said pricing would continue to determine patronage in a liberalised market. Its spokesperson, Chinedu Ukadike, noted that marketers unwilling to adjust prices risk losing customers while incurring rising bank interest costs.
Meanwhile, Dangote refinery disclosed that PMS supply under its marketer arrangement began in October 2025 with 600 million litres, rising to 1.5 billion litres by December.
The refinery said daily loading volumes now range between 31 million and 48 million litres, depending on demand.The refinery added that measures such as reduced minimum purchase volumes and credit facilities were introduced to expand access, boost domestic fuel utilisation and support more competitive retail pricing.
