The battle for market dominance between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has intensified, with the state-owned oil giant slashing petrol pump prices to ₦860 per litre in Lagos.
This move follows Dangote Refinery’s decision to refund ₦65 per litre to oil marketers, absorbing a staggering ₦16 billion loss to ensure Nigerians benefit from cheaper fuel prices. The refinery recently cut its gantry price from ₦890 to ₦825 per litre, a move it says aligns with President Bola Tinubu’s Renewed Hope Agenda aimed at economic recovery.
“This step, effective February 27, 2025, ensures that none of our business partners will suffer a loss due to the price change. More importantly, it allows the new lower rate to take immediate effect nationwide for Nigerians to benefit,” Dangote Refinery stated.
𝐅𝐮𝐞𝐥 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬 𝐒𝐡𝐢𝐟𝐭
Despite being competitors, NNPCL still purchases fuel from Dangote Refinery for its Lagos stations, as the state oil company has not imported any fuel this year. This has further fueled speculation about the sustainability of the ongoing price war.
Reports indicate that queues at NNPC stations have disappeared, with many motorists opting for private fuel retailers like MRS, which stock Dangote’s petrol. Many consumers claim Dangote’s petrol lasts longer, creating a preference shift.
While oil marketers have confirmed NNPCL’s price slash to ₦860 per litre, they noted that an official memo is yet to be issued by the state oil company.
As Nigeria’s two key petrol producers—Dangote Refinery and NNPCL’s Port Harcourt Refinery—battle for market control, industry analysts are closely watching how long both entities can sustain these aggressive price cuts.
