A price war has broken out in Nigeria’s downstream petroleum sector, as fuel importers begin undercutting the Dangote Petroleum Refinery, the country’s largest private refining project. The development has reignited a fierce debate over the future of Nigeria’s liberalised fuel market.
Despite recent appeals by Aliko Dangote for the Federal Government to halt fuel imports in support of local refining, several independent marketers have begun selling petrol below the refinery’s benchmark price, fuelling competition across the southwest.
Our findings reveal that some Lagos and Ogun-based filling stations are offering petrol at less than ₦860 per liter—cheaper than the ₦865 to ₦875 rates offered by Dangote-linked outlets such as MRS and Heyden. In Ogun State, a station operated by SGR was observed selling petrol at ₦847 per litre as of Tuesday.
Depot-level competition is even more intense. While Dangote Refinery reportedly fixed its ex-depot price at ₦820/litre this week, rival importers like Aiteo and Menj were selling at ₦815, undercutting the refinery despite previous losses incurred earlier this year when Dangote slashed prices to capture market share.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the downward trend. “Depot owners are dropping their petrol prices. Some are selling at ₦815, ₦817. Dangote is at ₦820. NNPC is still at ₦825,” he said.
He praised the trend as a validation of President Bola Tinubu’s liberalisation policy. “This is the beauty of market liberalisation. That is why we maintain that no one should be banned from importing petroleum products. Local refining and competition will naturally correct pricing abuses,” Ukadike added.
But Aliko Dangote sees things differently. At a recent industry forum organised by the Nigerian Upstream Petroleum Regulatory Commission, he decried what he called the “dumping” of toxic, substandard and subsidised fuels — particularly from Russia — into African markets.
“Increased dumping of cheap, often toxic petroleum products — some blended to standards unacceptable in Europe — is undermining our industry. Local refiners like us are forced to compete below cost,” he warned.
Dangote argued that the Nigeria First policy announced by President Tinubu should extend to the petroleum sector. “The policy should protect domestic production. The US, EU, and Canada do it. Why not Nigeria?” he asked.
He alleged that Russian oil, imported at discounted rates due to international price caps, was being sold in African markets at artificially low prices. “This creates an unlevel playing field. In Nigeria, pump prices have crashed to 60 cents per liter—even lower than in Saudi Arabia,” he said.
But industry stakeholders and marketers pushed back against any moves to restrict imports. They warn that such protectionist policies could lead to price hikes, monopolistic practices, and fuel scarcity.
For now, the open market remains a battlefield — one where Nigeria’s biggest refinery and global fuel traders are locked in a struggle for dominance, with consumers watching closely at the pump.
