The ongoing price war in Nigeria’s downstream oil sector took another turn on Thursday as Dangote Petroleum Refinery quietly reduced its petrol loading cost from ₦825 per litre to ₦815 per litre in a strategic move to regain market dominance. The price cut, though minor, was met with enthusiasm by oil marketers, who began bypassing private depots in favor of sourcing directly from the refinery.
Industry analysts predict that this latest reduction will put further pressure on private depot owners, who may be forced to lower their prices to stay competitive. Already, some depots in Lagos have adjusted their loading prices, with most now selling at ₦825 per litre, down from ₦830 earlier in the week.
The price shift comes just days after reports revealed that the landing cost of imported petrol had dropped to ₦774.72 per litre, prompting retail marketers to shift preference toward imported products due to lower pricing. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, noted that fluctuations in crude oil prices directly impact petrol costs, raising expectations that pump prices could fall to around ₦800 per litre.
The price adjustment by Dangote Refinery has triggered swift reactions from private depot owners. While some, like AA RANO and MENJ depots, maintained their loading prices at ₦830 per litre, others have adjusted downward. Bovas depot is now selling at ₦826 per litre, Integrated depot at ₦826, and RAINOIL at ₦831. AITEO, which previously charged ₦832, has dropped its price to ₦827. Meanwhile, WOSBAB is offering petrol at ₦831 per litre.
An oil marketer who requested anonymity confirmed the price drop, stating, “Yes, I saw the new pro forma invoice (PFI). The ex-depot price is now ₦815 per litre, and when you add the ₦10 regulatory levy from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the final cost becomes ₦825 per litre.”
Despite the competition-driven price cuts, the cost of imported petrol is once again increasing. The latest data shows that the landing cost of petrol has risen to ₦803.35 per litre from ₦774.82 per litre earlier in the week. This is still lower than Dangote Refinery’s ex-depot price, further intensifying market competition.
A Dangote Refinery official, when contacted for clarification, neither confirmed nor denied the new pricing but suggested that reports from oil marketers should be relied upon until an official statement is released.
As the battle for market share continues, industry watchers anticipate more price adjustments in the coming weeks. While marketers welcome the price competition, consumers remain hopeful that the pump price of petrol will eventually reflect these downward trends, offering some relief in an economy grappling with high inflation and living costs.
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