Dangote Refinery slashes petrol Prices again amid growing industry competition

In a fresh bid to assert dominance in Nigeria’s downstream oil sector, Dangote Petroleum Refinery has announced a further reduction in the pump prices of Premium Motor Spirit (PMS), widely known as petrol. The latest cut sees prices drop by an additional N15 per litre across all regions, bringing petrol to between N875 and N905 nationwide.

According to the updated pricing template released by the company, Lagos residents will now pay N875 per litre, while those in the South-West will buy at N885. Consumers in the North-West and North-Central regions will pay N895, while the North-East and South-South, traditionally the highest-priced zones, will see prices fall to N905 per litre.

The announcement marks a significant move in the intensifying rivalry between Africa’s largest privately-owned refinery and the state-owned Nigerian National Petroleum Company Limited (NNPC), which has long dominated fuel imports and retail.

Dangote’s pricing revision is seen as both a competitive strategy and a response to growing market pressures, especially as the refinery gains momentum with full-scale operations. The 650,000-barrels-per-day Lekki-based facility has increasingly positioned itself as a game-changer in Nigeria’s fuel supply matrix, offering cleaner and more affordable alternatives.

“This new price adjustment reflects our commitment to easing the burden on Nigerians and supporting economic stability,” said Anthony Chiejina, Group Chief Branding and Communications Officer for the Dangote Group. He attributed the price reduction to favourable supply chain arrangements, including a naira-for-crude swap deal with the Nigerian government, which has helped cut input costs.

The reduction is being rolled out through the refinery’s expanding network of partner outlets, including MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy. These partners are crucial to Dangote’s strategy of bypassing traditional distribution bottlenecks and offering more competitive pricing at the retail level.

NNPC Under Pressure

The price cut comes as the NNPC faces mounting pressure to keep up with the Dangote Refinery’s growing footprint. While the NNPC remains the country’s primary fuel importer and maintains a vast retail network, it has struggled to match Dangote’s recent pricing flexibility, largely due to forex constraints, subsidy arrears, and underperforming local refineries.

Industry watchers say the entry of Dangote into the market is already disrupting the decades-long monopoly held by the NNPC. “What we are witnessing is a slow but steady shift in market power,” said Bamidele Yusuf, an energy analyst based in Abuja. “Dangote’s refinery is not only locally refining but is also leveraging currency advantages and private sector efficiency to lower costs.”

In April, the NNPC reportedly began talks to secure crude supplies for its yet-to-be-fully-operational refineries in Port Harcourt, Warri, and Kaduna, in a bid to reduce dependence on imports. However, many experts remain skeptical about timelines and sustainability.

With the deregulation of the downstream sector and the removal of petrol subsidies, competition is now shaping market outcomes. Dangote’s move is expected to influence price-setting behaviour across the country, potentially forcing other retailers and even the NNPC to reconsider pricing and supply strategies.

Moreover, Dangote’s refinery is expected to begin exporting petrol to neighbouring West African countries in the coming months, a move that could redefine Nigeria’s role as a regional fuel supplier.

“This is just the beginning of a more competitive and diversified fuel market in Nigeria,” said Yusuf. “Consumers will ultimately benefit from better pricing, quality, and efficiency.”

As the Dangote Refinery ramps up operations and consolidates its distribution framework, Nigerians may see more price adjustments and an emerging rivalry that could finally break the long-standing inefficiencies in the petroleum retail sector.