Importers have lowered petrol prices below those set by Dangote Petroleum Refinery, intensifying competition in the market. This comes amid calls by Dangote Group President, Alhaji Aliko Dangote, for the Federal Government to ban fuel imports.
According to findings, some filling stations now sell petrol for less than ₦860 per litre, while Dangote’s partners, including MRS and Heyden, price theirs at ₦865 or ₦875 per litre in Lagos and Ogun States.
For instance, a station named SGR in Ogun State dropped its price to ₦847 per litre as of Tuesday. Marketers confirmed to The PUNCH that most importers have reduced their ex-depot petrol prices to below those of the Dangote refinery.
As of Tuesday, the Dangote refinery was reportedly selling petrol at ₦820 per litre, with some depots offering it at ₦815 per litre. Petroleumprice.ng noted that companies like Aiteo and Menj priced petrol at ₦815 per litre on the same day.
Our correspondent learned that importers are competing aggressively through price cuts to stay afloat, having previously complained of losses since Dangote refinery, with its 650,000 barrels per day capacity, began consistently lowering prices earlier this year.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the ongoing price reductions by importers. He said, “Depot owners are dropping their petrol prices. Some are selling at ₦815, others at ₦817, while Dangote is at ₦820. NNPC is still selling at ₦825; it hasn’t reduced prices yet.”
Ukadike praised this competitive pricing as a benefit of market liberalization and urged President Bola Tinubu not to heed calls to ban fuel importation. “That is the beauty of an open market. No one should be stopped from importing petroleum products. Local refining and proper implementation will prevent unfair pricing. As an indigenous country, refining locally is key to securing the best prices,” he added.
Responding to concerns about the importation of substandard or toxic fuels, the IPMAN spokesman noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority is tasked with monitoring and curbing the influx of such products.
Currently, importers appear to be challenging Dangote by leading the push to lower petrol prices—a practice Dangote has criticized as unfair competition. He argues that fuel importation threatens local refining efforts and deters investment in the sector and broader economy.
Dangote has urged African governments to implement protective measures similar to those in the U.S., Canada, and EU to shield domestic producers from unfair competition.
He emphasized that the “Nigeria First” policy announced by President Tinubu should also apply to petroleum products. Dangote seeks a ban on the importation of petrol, diesel, and other locally produced products, asserting that local refiners struggle to compete due to dumping.
He accused importers of bringing in cheap, sometimes toxic fuel blends that would not be permitted in Europe or North America. He also noted that discounted Russian crude and petroleum products flood African markets, pushing local producers to sell below production costs.
“Because of price caps on Russian products, discounted fuel or crude from Russia enters Africa, undercutting local production based on full crude pricing. This creates an uneven playing field. Petrol and diesel sell for about a dollar net of taxes elsewhere, but in Nigeria, prices are about 60 cents, even lower than Saudi Arabia, which produces and refines its own oil,” Dangote said during a recent Nigerian Upstream Petroleum Regulatory Authority event in Abuja.
However, marketers have rejected Dangote’s position, urging the Federal Government not to include petroleum products in the ‘Nigeria First’ import ban list.
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