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Marketers May Shift to Cheaper Petrol As Dangote Lower Price

Amidst intense competition in Nigeria’s oil sector, independent marketers are dropping NNPCL to secure cheaper petrol from Dangote Refinery.
marketers dangote

A growing number of oil marketers in Nigeria are abandoning their Nigerian National Petroleum Company Limited (NNPCL) franchise deals, rebranding their filling stations as they shift towards cheaper fuel sources. This move follows the recent reduction in the ex-depot price of Premium Motor Spirit (PMS) by the $20 billion Lekki-based Dangote Petroleum Refinery.

Reports indicate that numerous former NNPCL-affiliated stations, particularly in Lagos and along the Lagos-Ibadan expressway, are now adopting new brand identities. This development is driven by the deregulation of the downstream oil sector, which has intensified competition, allowing marketers to secure fuel at more competitive rates.

Why Marketers Are Ditching NNPCL

The Dangote Refinery’s decision to lower its ex-depot price from ₦950 to ₦890 per litre has made its fuel offerings significantly more attractive than imported alternatives. Independent marketers, who previously relied on NNPCL’s franchise to access subsidized petrol, are now opting for direct purchases from Dangote and other private suppliers.

Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the shift, stating that marketers are prioritizing cost-effectiveness. He noted that filling stations previously affiliated with NNPCL are now switching to other brands like MRS, which offers more competitive pricing.

Experts also revealed that the franchise licence system, which allowed marketers to leverage NNPCL’s import-based supply network, became less viable with the entrance of Dangote’s refinery. The inability of NNPCL to establish a fixed-price agreement with Dangote further fueled the exodus.

Future of the Nigerian Downstream Oil Sector

The shift away from NNPCL franchises signals a broader transformation in Nigeria’s petroleum distribution network. With the cost of imported fuel surpassing Dangote’s locally refined petrol—now averaging ₦939 per litre—more marketers are expected to exit NNPCL agreements.

While NNPCL has yet to officially respond, industry leaders suggest that more stations will rebrand as the market adapts to the new realities of supply and demand. For Nigerian consumers, this could mean more pricing competition and potentially lower petrol costs in the long run.

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