Petrol Prices Drop Along Lagos–Ibadan Expressway as Retailers Battle for Customers

Petrol prices have dropped across parts of the Lagos–Ibadan Expressway as filling stations intensify competition to retain customers, offering lower pump prices despite recent increases in refinery costs. From about ₦839 per litre last week, petrol is now selling for as low as ₦812 per litre along the Mowe–Ibafo axis in Ogun State, signalling an emerging price war among retailers.

A weekend survey showed that several stations were selling premium motor spirit below the ₦839 per litre recommended by the Dangote Petroleum Refinery after it raised its gantry price to ₦799. SGR Filling Station in Mowe recorded the lowest price at ₦812 per litre, while Alade, Habeeb, SAO, Akiavic, and NIPCO stations sold petrol between ₦819 and ₦828 per litre. AP stations along the corridor dispensed petrol at prices ranging from ₦830 to ₦834 per litre.

The competition has also forced Dangote-partnered MRS outlets to respond. An MRS station at Olowotedo reduced its price to ₦825 per litre from ₦839, although another outlet near the Redeemed Christian Church of God camp maintained the higher price even as neighbouring stations offered cheaper alternatives. Industry data show that the landing cost of imported petrol averaged ₦724 per litre last week, about ₦75 lower than Dangote’s gantry price.

Despite this gap, a refinery official said many of the stations selling cheaper petrol sourced their supply directly from Dangote, explaining that the ₦799 gantry price includes regulatory charges that give retailers room to adjust pump prices competitively. The shift marks a reversal from earlier months when higher import costs made it difficult for non-Dangote marketers to compete.

Meanwhile, the Dangote refinery has warned that continued dependence on coastal fuel delivery could push petrol prices close to ₦1,000 per litre, stressing that gantry loading remains the most cost-effective option. As domestic supply increases and import volumes decline, analysts say the sustainability of the current petrol price drop in Nigeria will depend on exchange rates, supply levels, and future pricing decisions by refiners and marketers.

source: punch