Dangote Price Cut Triggers Fresh Round of Petrol Reductions

A fresh wave of price competition has gripped the downstream oil sector as retail stations along the Lagos-Ibadan Expressway aggressively cut pump prices to attract motorists.

Leading the price battle, SGR Filling Station in the Mowe axis has further reduced its petrol price to N805 per litre. According to findings by Harmattan news, the station adjusted its pump price downward from N812 earlier in the week, retaining its position as the most affordable outlet in the corridor. The move came shortly after a NIPCO station near Lotto reduced its rate from N828 to N812 per litre.

Checks on Friday revealed that several other outlets are now aligning their prices with those of their competitors in a bid to retain market share.

At Ibafo, Alade Filling Station continued to dispense petrol at N820 per litre, while Habeeb Filling Station maintained a price of N819 per litre. Other stations, including SAO in Mowe and Lotto, sold the product at N825 per litre. Akiavic AP and various other players along the route were also seen adjusting their rates to remain competitive.

The competition has also affected major brands. The Dangote-partnered MRS station at Olowotedo was compelled to lower its pump price from N839 to N825 per litre, following a customer shift toward cheaper alternatives. However, another MRS outlet near the Redeemed Christian Church of God camp retained its price at N839 per litre, even as a neighbouring AP station reduced its rate to N834.

Meanwhile, outlets operated by the Nigerian National Petroleum Company Limited in Lagos and Ogun sold petrol at prices ranging from N837 to N840 per litre, depending on location and local competitive pressures.

The retail adjustments follow a strategic price cut by Dangote refinery earlier in the week. On Tuesday, the refinery reduced its ex-depot (gantry) price for petrol by N25, from N799 to N774 per litre. In a notice to marketers, the company’s Group Commercial Operations Department stated that the new rate took immediate effect.

Despite the reduction in gantry price, many retailers, including MRS stations, have yet to reflect the change at the pump, continuing to sell at N839 per litre the same margin maintained when the ex-depot price was N799. This contrasts with previous instances where pump prices were adjusted immediately following an increase in ex-depot rates.

Dangote refinery defended its pricing, stating that the latest adjustment enhances the competitiveness of local products. It noted that the current landing cost of imported Premium Motor Spirit from Lome stands at approximately N793 per litre, above its own ex-depot price of N774 per litre.

However, the Major Energies Marketers Association of Nigeria offered a different figure, putting the average landing cost of imported petrol at N722.08 per litre about N52 lower than Dangote’s gantry price.

In a related development, Dangote refinery announced that it has reached its full nameplate capacity of 650,000 barrels per day. In a statement issued on Wednesday, the company said it had successfully restored and optimised its crude distillation unit and motor spirit production block. It added that it had commenced a 72-hour intensive performance test in collaboration with its licensor, UOP, to validate operational stability and global compliance standards.

According to the company, the milestone followed a scheduled maintenance exercise and represents a significant step in the ramp-up of Africa’s largest single-train refinery.

David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, described the seamless integration of the units as a reflection of the facility’s engineering depth and operational resilience.