The petroleum sector is witnessing a deepening price war among retail outlets. Some stations now sell Premium Motor Spirit (PMS) below the N739 per litre recommended by Dangote Petroleum Refinery.
Since December 2025, Dangote reduced petrol pump prices from around N900 to N739 per litre. Many importers and depot owners reported losses, prompting some to sell below their costs.
Over the weekend, a survey revealed NIPCO sold PMS at N738 per litre. SAO stations priced it at N735, while Akiavic offered N737. Even an AP station near MRS in Mowe dropped to N736 per litre.
Filling stations monitor rivals’ prices closely, ensuring they remain competitive in this highly contested market. Motorists flock to the cheapest outlets, leaving higher-priced stations struggling for customers.
The Major Energies Marketers Association noted the landing cost averaged N762.38 per litre, exceeding Dangote’s ex-gantry price of N699. Nonetheless, marketers adjusted rates to stay competitive. Operators insist the price cuts reflect market strategy, not import quality. They aim to capture larger market shares without targeting rivals.
Dangote has stressed enforcement of the N740 cap nationwide. Supply under marketers’ arrangements rose from 600 million litres in October to 1.5 billion litres in December 2025. Reduced minimum purchase volumes and credit facilities further support small operators.
With domestic PMS priced lower than imports, competition continues to drive affordability and improve fuel access across Nigeria.
