Competition for market share between the Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) has escalated, with both entities slashing petrol prices in a bid to attract customers.
A market survey by Brand Icon Image on Tuesday confirmed that NNPCL reduced the price of Premium Motor Spirit (PMS) to ₦860 per litre at its stations in Lagos. This move comes just days after Dangote Refinery announced a N16 billion loss absorption plan, refunding N65 per litre** to marketers to ensure Nigerians benefit from cheaper fuel.
In a statement over the weekend, Dangote Refinery disclosed that it would refund customers who purchased PMS at rates higher than its advertised prices from key partners—Ardova Plc (AP), Heyden, and MRS—across Nigeria. This follows its recent reduction of the gantry price from N890 per litre to N825 per litre.
The refinery stated that the initiative, effective from February 27, 2025, aligns with President Bola Tinubu’s Renewed Hope Agenda, aimed at stimulating the economy. “This step ensures that none of our business partners incur losses due to the price change and guarantees immediate nationwide benefits for Nigerians,” the statement read.
In response, NNPCL swiftly reduced its pump price to ₦860 per litre across its Lagos stations on Monday, further fueling the price war. However, oil marketers said that they had yet to receive an official memo from NNPCL regarding the new price.
Currently, Dangote Refinery and NNPCL’s Port Harcourt Refinery are the only petrol producers in Nigeria. Despite this, NNPCL confirmed it still purchases petrol from Dangote Refinery for its Lagos stations, as it has not imported any fuel this year.
Dangote Refinery’s recent price cuts have reshaped the petrol market, with queues at NNPCL stations shifting to private filling stations like MRS. This shift is attributed to price differences and claims that Dangote’s petrol lasts longer in fuel tanks.