As the price war in the downstream oil sector continues, leading to recurring reductions in the price of Premium Motor Spirit, commonly known as petrol, oil marketers have resorted to slashing the volume of their fuel purchases amid mounting losses from the price drop.
The price war, primarily between Dangote Petroleum Refinery and the Nigerian National Petroleum Corporation Limited, began in November 2024 when Africa’s largest private refinery lowered the price of petrol from N990 to N970 per litre.
Dangote further reduced it to N899 per litre, citing the need to provide relief for Nigerians during the holiday season.
Days after Dangote’s move, NNPCL also slashed the product’s ex-depot price from N1,040 to N899 per litre, according to the Petroleum Products Retail Outlets Owners Association of Nigeria.
On February 1, 2025, Dangote Refinery again reduced the petrol price to N890 per litre before further lowering it to N825 per litre on February 27, setting the stage for continued pricing competition with NNPCL.
In a statement signed by its Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery said the price adjustment was a direct response to the positive outlook within the global energy and gas markets and the recent reduction in international crude oil prices.
However, on March 3, 2025, some NNPCL retail outlets reported that the oil firm had also adjusted its petrol pump price to N860 per litre, reflecting the intense price war among fuel merchants.
According to stakeholders in the downstream sector, the frequent price reductions, signalling the ongoing price war between Dangote Refinery and NNPCL, have benefited Nigerians.
However, energy experts argue that the continuous decline in PMS prices has been causing significant losses for oil marketers and importers, who lose an average of N2.5bn daily and N75bn monthly.
Oil Marketers reactions to NNPC/Dangote price war
Amid mounting losses, oil marketers under PETROAN have called for a regulation mandating that fuel prices be adjusted only every six months. Still, it remains uncertain whether the regulatory body will approve the demand.
