James Uche
Petrol importers have slashed prices below those offered by the Dangote Petroleum Refinery, triggering a fresh wave of competition in the downstream oil sector. Investigations revealed that some filling stations in Lagos and Ogun states are now selling petrol for as low as N847 per litre, compared to the Dangote refinery’s price and its partner stations, including MRS and Heyden, which sell at N865–N875.
Depot owners have also joined the price war. Platforms such as Aiteo and Menj were seen selling petrol at N815 per litre—below the refinery’s ex-depot rate and even lower than the Nigerian National Petroleum Company Limited (NNPC), which is maintaining a price of N825 per litre. Independent Petroleum Marketers Association of Nigeria (IPMAN) National Publicity Secretary, Chinedu Ukadike, confirmed the downward review, noting that market liberalisation was driving competitive pricing.
“This is the beauty of an open market,” Ukadike said. “No one should be stopped from importing petroleum products. Competition ensures fair pricing, and local refining will naturally stabilise the market over time.”
However, Alhaji Aliko Dangote, President of the Dangote Group, has raised concerns, calling for the Federal Government to halt fuel importation. He argued that importers are engaging in what he described as “unfair competition” by dumping cheap, often substandard petroleum products—some subsidised or blended below acceptable standards—into the Nigerian market.
“At present, imported fuel is being sold at prices far below our production costs,” Dangote said at a recent Nigerian Upstream Petroleum Regulatory Authority (NUPRC) forum in Abuja. “Some products are even brought in from Russia at discounted prices. This practice is killing local refining and discouraging investments in the sector.”
He urged African governments to protect domestic refiners, citing similar protective measures adopted in the United States, Canada, and the European Union. “The Nigeria First policy announced by President Bola Tinubu should extend to petroleum products. Otherwise, our refineries will remain uncompetitive,” he added.
Importers, however, have dismissed Dangote’s claims, arguing that banning fuel imports would stifle competition and lead to price hikes. They maintain that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is fully capable of enforcing quality standards to prevent substandard products from entering the country.