The Nigeria National Petroleum Company Limited (NNPCL) and some other marketers have reduced petrol prices below the price offered by the Dangote Petroleum Refinery partners in Lagos, sparking a new wave of competition in the downstream petroleum market.
Checks by Pinnacle Daily in parts of Lagos on Sunday revealed price disparity between NNPCL retail stations, some independent marketers, and Dangote refinery partners.
While NNPCL and some independent retail outlets sell at ₦899 per litre, Dangote Refinery partners such as MRS, Ardova PLC (AP), and Hyden sell at ₦915 per litre in Lagos.
An NNPCL filling station along Ire-Akari Estate road, Isolo, sold at ₦899. Another filling station named Al-Moruff along Isolo road also sold at ₦899 per litre.
Mobil, Ibwas, Sunbeth, Total filling stations, and others sell between ₦900 and ₦910 per litre in parts of Lagos.
Meanwhile, the ex-depot price of petrol at Dangote Refinery stood at ₦851 per litre, according to data published by Petroleumprices.ng. Other depot owners, such as Aiteo and NIPCO, are at ₦849, Pinnacle (₦856), Rainoil in Lagos, and Techno Oil (₦858).
The latest price drop followed the suspension of the implementation of a 15 per cent import duty on petrol and diesel by the federal government.
Pinnacle Daily had reported that the federal government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), announced the suspension on Thursday, November 13, allaying fears of scarcity and assuring adequate supply nationwide. The agency, which advised the public against panic buying, assured that it would continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during the peak demand period.
The federal government had said the import duty was to protect local refineries and boost domestic production as part of the overall objective of accelerating Nigeria’s drive for energy self-sufficiency.
READ ALSO: Nigerian Govt Suspends 15% Import Duty on Petrol, Diesel, Assures Adequate Supply
However, following reactions that trailed the announcement, the government decided to halt the implementation of the tariff policy.
Prior to the suspension, NNPCL had sold at ₦920 per litre in Lagos.
Late last month, the landing cost of imported petrol had dropped to ₦839.97 per litre, cheaper than Dangote Refinery’s ₦877 per litre.
However, the recent drop in the gantry price of Dangote petrol by almost ₦50 after the federal government announced plans to impose the 15 per cent import duty made a couple of marketers lose hope of continuing importation.
READ ALSO: Petrol Prices Drop in Abuja After Nigeria Suspends 15% Import Duty
Industry watchers observed that the suspension of the fuel import duty seems to have given petroleum importers a ray of hope for continuing shipments into the country, hence the fresh price cut witnessed over the weekend.
Commenting on the development, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Chinedu Ukadike, said the price drop might not be unconnected with the Nigerian government’s suspension of the 15 per cent import duty on petrol and diesel.
He observed that the planned 15 per cent import duty had caused anxiety in the market, which has now eased following the suspension of the tariff policy. He emphasised the need for the government to delay import restrictions until domestic refineries have proven capacity to meet 100 per cent of national demand. He said data shows that local capacity currently serves only 40 per cent of the market.
Analysts believe that what seems like a fresh petrol price war, resulting in NNPCL and Marketers Selling below Dangote Refinery price, signifies a crucial moment for Nigeria’s oil and gas industry. They noted that it marks the end of a single-pricing model and the beginning of a competitive market where prices will be determined by supply, efficiency, and market strategy rather than government subsidy.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
