Competition in Nigeria’s downstream oil sector has intensified following a discreet price reduction by Dangote Petroleum Refinery, which slashed its petrol loading price from ₦825 per litre to ₦815 per litre. The price adjustment, which took effect on Thursday, March 13, has prompted a wave of reactions from oil marketers and private depot owners across the country.

The move has been met with enthusiasm by oil marketers, many of whom are now bypassing private depots to source directly from the refinery. Industry analysts predict that this ₦10 per litre reduction could push private fuel depots to further lower their prices in a bid to stay competitive. As a result, retail pump prices of Premium Motor Spirit (PMS), commonly known as petrol, could potentially decline to around ₦800 per litre if the trend continues.

The price war has led to a series of adjustments among private depots in Lagos, with many lowering their rates to ₦825 per litre, down from the previous ₦830 per litre. However, some depots continue to maintain slightly higher rates, with AA RANO and MENJ selling at ₦830 per litre, BOVAS at ₦826 per litre, WOSBAB at ₦831 per litre, AITEO reducing its rate from ₦832 to ₦827 per litre, Integrated Depot at ₦826 per litre, and RAIN OIL Depot at ₦831 per litre.

Amid these price shifts, the landing cost of imported petrol has risen to ₦803.35 per litre, up from ₦774.82 per litre. Despite the increase, this remains lower than Dangote’s ex-depot price, according to the Major Energies Marketers Association of Nigeria (MEMAN).

Speaking on the development, Chief Ukadike Chinedu, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that a further drop in crude oil prices could result in petrol prices falling to ₦800 per litre. He emphasized that the ongoing price reductions highlight the benefits of deregulation, with increased competition driving prices down.

Meanwhile, an official at Dangote Refinery, speaking anonymously, claimed no official knowledge of the price change but acknowledged that oil marketers had reported the adjustment. He stated that further clarification would be provided soon.

With the market now witnessing an all-out price war between local refiners and importers, consumers could benefit from more affordable fuel prices in the coming weeks. The industry is watching closely as Dangote Refinery and private depots continue to adjust their strategies in this competitive landscape.