The ongoing price competition in Nigeria’s downstream oil sector escalated on Thursday as the Dangote Petroleum Refinery reduced its petrol loading price from N825 per litre to N815 per litre at its loading gantry.
The move was welcomed by oil marketers, who swiftly began sourcing their products directly from the refinery, bypassing private depot owners. The N10 price cut is expected to trigger further reductions from private depots to remain competitive.
Impact on Private Depots
In response, private depot owners in Lagos reduced their loading prices from N830 per litre to N825 per litre. However, some depots maintained different pricing:
- AA RANO – N830 per litre
- MENJ Depot – N830 per litre
- Bovas Depot – N826 per litre
- WOSBAB – N831 per litre
- AITEO – N827 per litre (down from N832)
- Integrated Depot – N826 per litre
- RAINOIL Depot – N831 per litre
The Ongoing Price War
Industry players say the price battle was fueled by the recent drop in petrol’s landing cost, which had fallen to N774.72 per litre earlier in the week. This led many retail marketers to prefer imported petrol over Dangote’s, forcing the refinery to adjust its pricing to maintain its market dominance.
However, the landing cost of imported petrol has since increased to N803.35 per litre, still lower than Dangote’s new ex-depot price.
IPMAN’s Reaction
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, described the price reductions as the result of deregulation.
“Dangote has millions of litres and would not want any external force to take its market share. That is why they have reduced their price,” Ukadike stated.
Dangote Refinery’s Response
An official of the Dangote Refinery, who declined to be quoted, claimed to be unaware of the new pricing structure but stated that oil marketers’ reports could be relied upon.
“We currently don’t have any information about that, but we will try to clarify tomorrow. You can report what marketers told you,” the official said.
The evolving price war highlights the growing competition in Nigeria’s downstream sector, with both private depots and the Dangote Refinery adjusting their strategies to control the market.
