As more MRS filling stations in Lagos and Ogun states began dispensing Premium Motor Spirit produced by the Dangote Petroleum Refinery at ₦739 per litre, motorists have increasingly boycotted retail outlets selling petrol at higher prices.

According to The PUNCH, the development has forced several filling stations to slash their pump prices by about ₦100 per litre, an amount reportedly far below their cost of purchase, highlighting the intensity of the ongoing price war in Nigeria’s downstream oil sector.

Last week, the Dangote refinery surprised depot owners and marketers when it reduced its gantry price of petrol by ₦129, from ₦828 to ₦699 per litre. During a recent press briefing, President of the Dangote Group, Aliko Dangote, disclosed that he had received information suggesting that some marketers planned to retain high pump prices despite the reduction at the depot level.

Following this, Dangote vowed to enforce the new pricing regime, announcing that MRS stations would begin selling petrol at ₦739 per litre from last Tuesday. “I was told that the marketers have met with (some officials) and were told to make sure that the price is maintained high. But this price we are going to introduce, we are going to start with MRS stations, most likely on Tuesday (last week) in Lagos; that ₦970 per litre, you won’t see it again. We have also asked members of IPMAN to come now. We have asked anybody who can buy 10 trucks to come and buy 10 trucks at ₦699.

“We are going to use whatever resources we have to make sure that we crash the price down. For this December and January, we don’t want people to sell petrol for more than ₦740 nationwide. Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure that these prices are down. If you have money to come and buy, you can pick up petrol at ₦699,” he said.

The PUNCH reported that when some MRS filling stations in Lagos reduced petrol prices on Tuesday, it resulted in long queues as motorists rushed to purchase fuel at the cheaper rate. The MRS filling station at Alapere, Lagos, recorded a massive influx of buyers, many of whom avoided stations selling petrol above ₦800 per litre.

Subsequent checks by on Sunday showed that several other filling stations had begun reducing prices in order to remain competitive. From prices exceeding ₦900 per litre last week, many outlets were now selling petrol below ₦800 per litre as motorists increasingly patronised cheaper stations.

While MRS and other outlets offering lower prices experienced high patronage, stations selling at higher rates struggled to attract customers.

“The good thing is that there is always an MRS in almost every neighbourhood you turn to, and this has given buyers the opportunity to shun other stations to buy the cheaper Dangote petrol from MRS. This is a major concern for all traders nationwide,” a major oil marketer familiar with the situation said on Sunday, speaking under the condition of anonymity to avoid victimisation.

The PUNCH further reported that as of Sunday, many filling stations had adjusted their pump prices. SGR filling station in Ogun State sold petrol at ₦750 per litre, while Petrocam in Mowe sold at ₦785 per litre. These stations struggled to compete with the ₦739 price offered by MRS opposite the Redeemed Christian Church of God Camp Ground, having previously sold close to ₦900 per litre.

Heyden, a known partner of Dangote, had yet to adjust its price and continued selling petrol at ₦875 per litre, while AP sold at ₦800 per litre. Observations along the Lagos-Ibadan Expressway showed Mobil selling at ₦780, Akiavic at ₦799, Habeeb at ₦850, Eternal at ₦880, and Asharami at ₦890 per litre.

The price reductions represented a cut of about ₦100 or more compared to previous levels before Dangote’s price adjustment. However, The PUNCH reported that the reductions were coming at significant financial losses to both the Dangote refinery and competing marketers.

Amid the stiff competition, the Nigerian National Petroleum Company Limited also reduced its petrol prices from ₦875 to between ₦825 and ₦840 per litre, depending on location. The state-owned oil firm was among the largest importers of petrol in November, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

In its fact sheet, the NMDPRA noted that the NNPC, regarded as the supplier of last resort, imported petrol in November to build inventory and ensure supply during the peak demand period.

However, with a landing cost of about ₦828 per litre, according to the Major Energies Marketers Association of Nigeria, importers such as the NNPC may struggle to compete with Dangote’s ₦699 ex-depot price and ₦739 pump price, effectively selling below landing cost.

The NNPC had previously been the sole importer of petrol due to subsidies. With the commencement of petrol production by the Dangote refinery about a year ago, the sector became fully deregulated, leading to the disappearance of long queues at NNPC stations caused by price differentials.

It was gathered that several NNPC stations in Lagos are now struggling to attract customers, as motorists prefer outlets offering cheaper fuel.

As marketers complained of losing billions of naira, Dangote responded that he was also incurring heavy losses. Findings by The PUNCH revealed that petrol importers could lose as much as ₦102.48 billion monthly following the refinery’s gantry price reduction.

At the same time, the Dangote refinery is projected to lose about ₦91 billion monthly as a direct result of the price cuts, underscoring the fierce competition reshaping Nigeria’s downstream oil market.

Earlier, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said, “Marketers will lose over ₦80bn on this reduction. We will lose more than ₦80bn. And now that this reduction is there, you will see that the pump price will start dropping gradually from ₦900 towards ₦750 per litre,” adding that consumers would naturally gravitate towards cheaper stations.

Ukadike urged the Dangote refinery to consider compensating marketers who purchased petrol at the old rates, suggesting discounts on future purchases to cushion the losses.

Dangote, however, insisted that the refinery was also bleeding financially. At his last media briefing, he revealed that the refinery lost about ₦60 billion in November alone after reducing gantry prices by ₦49.

“For the marketers, I pray, and I wish they would even lose more because I’m not printing money. I’m also losing money; it’s not that I’m making money,” Dangote said.

He added, “They want imports to continue. I don’t think it is right. They want to continue to dump imported petrol, so I must have a strategy of how to survive because $20bn of investment is too big to fail. We are in a situation where we will continue to play cat and mouse, and at the end of the day, somebody will give up. It is either we give up, or they will give up, and I don’t think I will give up.”

Speaking again on Sunday, Ukadike stated that any marketer who refused to reduce prices would inevitably lose customers, noting that pricing determines patronage.

“We are in a situation where competition can be determined by price. Patronage will be determined by pricing. Nobody is against you; nobody is regulating you. You will regulate yourself. The market will regulate itself. The time has gone when people were queuing at NNPC filling stations. Wherever the fuel is cheap, that is where the marketers go. So, we are in a price war. Demand and supply determine the price.

“Once Dangote has reduced the gantry price to ₦699, marketers will dive towards competitive pricing whereby they can retain their numerous customers; if not, interest from banks would be ‘eating’ your capital,” he said.

Ukadike also announced that IPMAN has entered into a partnership with the Dangote refinery.

“We have formed a partnership already because Dangote has invited IPMAN for the first time. The major marketers have failed Dangote. He has now realised that only the independent marketers are the strategic partners that can evacuate his petroleum products as quickly as possible. He said IPMAN should come and pick up the products. He said it clearly. And since that time, we have provided tremendous patronage,” he said.

He expressed confidence that Dangote would compensate IPMAN members for the losses suffered due to the sudden price reduction.

“Definitely, he will do that, seeing our continuous patronage. You know, Dangote’s marketing strategy is a reward for patronage. He makes it easier for independent marketers by cutting the minimum quantity we can purchase to 250,000 litres, and you know the independent marketers constitute over 85 per cent of petrol filling stations in this country. Our members are going straight to the refinery to load petrol individually,” he disclosed.

The Dangote refinery confirmed over the weekend that more than 1,000 fuel trucks now arrive at the facility daily to load petrol. In a statement, the company said it had become Nigeria’s central hub for fuel distribution following “bold strategic adjustments aimed at making energy more affordable and accessible.”

The refinery attributed the surge in truck loading to the reduction in gantry price and the lowering of minimum purchase requirements from two million litres to 250,000 litres. “These measures underscore Dangote refinery’s commitment to stabilising supply, fostering inclusivity, and supporting national economic growth,” the statement said.

To reassure marketers, the refinery disclosed that it had introduced a 10-day bank guarantee system to ensure uninterrupted supply and boost confidence in its operations.

“Since the announcement, the response from fuel marketers has been overwhelming. The refinery now records over 1,000 trucks loading PMS daily from its gantry, a clear testament to market trust in the Dangote refinery’s efficiency and leadership in the downstream sector.”

Aliko Dangote was also quoted as saying, “Our goal has always been to make energy affordable and accessible for every Nigerian. By reducing prices and lowering the minimum purchase volume, we are empowering both large and small marketers to participate in the market, ensuring fuel reaches every corner of the country.”

The company added that the approach opens the market to smaller operators, strengthens distribution networks, and improves fuel availability nationwide.

“By lowering barriers to entry, Dangote refinery is driving competition and ensuring Nigerians benefit from a more stable and affordable fuel supply chain,” it stated.

Meanwhile, in a short video shared on its social media platforms, the Dangote Group warned Nigerians against being overcharged by filling stations, announcing that petrol is now sold at ₦739 per litre.

“Petrol is now selling at ₦739.00 per litre at MRS filling stations nationwide. Avoid being overcharged by other stations. Say no to rip-offs. Get quality petrol at MRS stations nationwide. Many other stations are joining soon,” the Dangote Group said.