A fuel price war has stations selling gas cheaper than the big refinery's own benchmark. Retail outlets are now offering petrol at the rate set by the Dangote refinery, sparking intense competition. Some stations run by NIPCO and SAO have dropped prices to seven thirty-eight and seven thirty-five naira per liter, respectively. This undercuts the seven thirty nine naira price championed by the refinery's main partner, MRS Oil.
Market surveys show motorists flock to stations with the lowest prices, leaving others empty. Operators admit this is a brutal market share battle, not a reflection of cheaper imports. They stress they are not at war with any specific marketer or refinery. The move follows the Dangote refinery's earlier surprise reduction of its gantry price, which ignited the price crash.
The refinery's president had vowed to use resources to enforce lower nationwide prices. He accused some marketers of planning to keep prices high. The resulting competition means many stations now sell fuel below eight hundred naira. An association spokesperson said the market now regulates itself through demand and supply, with patronage following pricing.
Meanwhile, the Dangote refinery detailed its supply expansion to all qualified marketers. It reduced minimum purchase volumes and offered credit terms to support smaller operators. The initiative aims to boost local product use and maintain competitive pricing. The refinery addressed a recent rise in imports, linking it to regulatory decisions by former authorities.
It reaffirmed a commitment to reliable supply and market transparency. The goal remains supporting domestic refining to save foreign exchange and ensure energy security. The entire situation highlights a fiercely competitive downstream sector adjusting to new local supply dynamics.
Market surveys show motorists flock to stations with the lowest prices, leaving others empty. Operators admit this is a brutal market share battle, not a reflection of cheaper imports. They stress they are not at war with any specific marketer or refinery. The move follows the Dangote refinery's earlier surprise reduction of its gantry price, which ignited the price crash.
The refinery's president had vowed to use resources to enforce lower nationwide prices. He accused some marketers of planning to keep prices high. The resulting competition means many stations now sell fuel below eight hundred naira. An association spokesperson said the market now regulates itself through demand and supply, with patronage following pricing.
Meanwhile, the Dangote refinery detailed its supply expansion to all qualified marketers. It reduced minimum purchase volumes and offered credit terms to support smaller operators. The initiative aims to boost local product use and maintain competitive pricing. The refinery addressed a recent rise in imports, linking it to regulatory decisions by former authorities.
It reaffirmed a commitment to reliable supply and market transparency. The goal remains supporting domestic refining to save foreign exchange and ensure energy security. The entire situation highlights a fiercely competitive downstream sector adjusting to new local supply dynamics.
