Petrol Price War Escalates: Retailers Drop Prices Below Dangote’s N739/Litre Benchmark
The ongoing petrol price war in Nigeria has taken a sharper turn, with several retail outlets now selling Premium Motor Spirit (PMS) below the N739 per litre benchmark set by the Dangote Petroleum Refinery. Following Dangote’s historic reduction of pump prices from around N900 to N739 in December 2025, many importers and depot owners have reported mounting losses, forcing some to slash prices below their operational costs just to stay competitive.
A weekend survey revealed that some stations now charge less than the Dangote-backed MRS Oil, with NIPCO selling PMS at N738, SAO at N735, and Akiavic at N737 per litre. In Ogun State, an AP station next to an MRS outlet dropped its price to N736. This aggressive undercutting has made price monitoring essential, as motorists flock to stations offering the cheapest fuel.
Industry insiders say this price drop is a strategic move rather than a reflection of cheaper imported petrol. “This is not about imports being cheaper or better; it is a market strategy to gain a larger share,” an operator told The PUNCH, emphasizing that the competition is not targeted at any specific marketer or refinery. Despite the steep price cuts, both Dangote and importers continue to face financial pressure, reportedly losing billions of naira in December and January.
According to the Independent Petroleum Marketers Association of Nigeria, banks’ interest charges and the high cost of imports have forced marketers to adjust prices to retain customers. “Patronage will now be determined by pricing. Wherever fuel is cheap, that is where motorists go,” said spokesperson Chinedu Ukadike. Many stations across Lagos and Ogun States have responded, selling petrol below N800 per litre as the market self-regulates under competitive pressure.
The Dangote refinery, meanwhile, has expanded its supply program, increasing PMS availability from 600 million litres in October to 1.5 billion litres in December 2025, while reducing minimum purchase volumes for small and medium operators. The refinery says these measures aim to strengthen domestic refining, reduce dependence on imports, and ensure more affordable fuel for consumers, underscoring its commitment to a transparent and competitive downstream market.
source: punch