Nigeria’s downstream fuel market is witnessing a fresh price war as Dangote Refinery and private depot operators cut gantry prices to compete for market share. The move follows Dangote Refinery’s reduction of Premium Motor Spirit (PMS) from N877 to N828 per litre, a 5.6% drop, marking the second major price adjustment in three months. Analysts say these reductions aim to stabilise domestic supply and respond to market realities.
Private depot operators have also responded by lowering their gantry prices to maintain customer loyalty and protect their investments. Data from Petroleumprice.ng shows Aiteo, Bovas, and Eterna selling petrol at N850, N848, and N870 per litre, while AIPEC, Ardova, Integrated, and NIPCO peg theirs around N868–N870. Despite these cuts, retail pump prices remain largely unchanged, averaging N920 per litre, offering little relief to consumers.
Fuel marketers warn that selling below the market average could be financially risky. Some operators at the Apapa depot revealed that Dangote’s lower gantry prices have already forced many marketers into losses, and the minor price cuts now offered are mostly survival strategies to stay in business amid a volatile market.
Amid this price struggle, experts have cautioned against Nigeria’s proposed 15% tariff on imported petroleum products. Tanya Stepanova, Research Director at S&P Global Commodities Insights, stated that Nigeria still relies on imports to supplement local production, especially from Dangote Refinery. Unchecked tariff implementation could distort competition and disproportionately impact low-income households and small businesses, she said.
Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), stressed the need for transparent, evidence-based policymaking. He urged that open market pricing computations be regularly published to prevent market abuse, while advocating for alternative measures such as phased or conditional tariffs tied to verified increases in domestic supply. Active regulatory oversight is crucial to ensure fair competition and nationwide petrol availability.
source: The sun