The price war in Nigeria’s downstream petroleum sector has intensified, with several retail outlets now selling Premium Motor Spirit (PMS) below the N739 per litre benchmark recommended by the Dangote Petroleum Refinery.
The development follows Dangote Refinery’s decision in December to slash petrol pump prices from about N900 to N739 per litre, a move that has continued to pressure fuel importers and depot owners.
Many operators have reported mounting losses, as they are forced to sell below their landing costs to remain competitive.
A recent survey shows that some filling stations are now selling petrol at prices even lower than those offered by MRS Oil, the major marketer officially endorsed by Dangote Refinery to drive nationwide price reductions.
As of Sunday, NIPCO outlets were selling PMS at N738 per litre, SAO filling stations at N735, while Akiavic sold at N737 per litre.
In Mowe, Ogun State, an AP filling station located beside an MRS outlet reduced its pump price to N736 per litre, further escalating the competition.
Industry data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that the average landing cost of imported petrol stood at N762.38 per litre, significantly higher than Dangote Refinery’s ex-gantry price of N699 per litre.
Despite this gap, importers and independent marketers have continued to adjust their pump prices downward to compete with Dangote-backed supply channels.
Analysts say the ongoing price war is reshaping the downstream market, squeezing importers’ margins and increasing pressure on retailers to either align with local refinery supply or absorb losses to retain market share.
