The ongoing price war in Nigeria’s downstream oil sector took another turn on Thursday, as Dangote Petroleum Refinery quietly lowered its petrol loading cost from N825 per litre to N815 per litre at its loading gantry.
This N10 price reduction has been welcomed by oil marketers, who are now bypassing private depot owners to source their products directly from the refinery. Industry analysts suggest that this move could trigger further price cuts by private depots in a bid to retain market share.
Market Response and Price Adjustments
Earlier in the week, reports indicated that the landing cost of imported petrol had dropped to N774.72 per litre, sparking speculations that pump prices could fall to about N800 per litre. This led to retail marketers favoring imported petrol over locally refined products due to pricing advantages.
To counteract this trend, the 650,000 barrels per day Dangote Refinery slashed its ex-depot price to N815 per litre, effectively keeping its petrol competitive in the market. However, after adding the N10 levy from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the final ex-depot price remains N825 per litre.
Private depots have swiftly reacted, adjusting their prices accordingly:
- AA RANO, MENJ: N830 per litre
- BOVAS, Integrated: N826 per litre
- WOSBAB: N831 per litre
- AITEO: N827 per litre
- RAIN OIL: N831 per litre
Meanwhile, IPMAN National Publicity Secretary, Chief Ukadike Chinedu, described the ongoing price battle as the “beauty of deregulation”, stating that Dangote Refinery is actively protecting its market share from external competition.
While Dangote Refinery has yet to officially confirm the price reduction, market forces continue to influence pump prices. The landing cost of petrol has risen to N803.35 per litre, but this remains cheaper than Dangote’s ex-depot price, according to the Major Energy Marketers Association of Nigeria (MEMAN).
As the battle for market dominance continues, Nigerians could see further price adjustments, impacting the cost of fuel at retail stations nationwide.
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