In a bold market move that has reignited pricing wars in Nigeria’s deregulated petroleum sector, SGR, an independent oil marketer, has reduced the pump price of premium motor spirit (PMS) to N899 per litre in Ogun State — the lowest in the country. The development has triggered mixed reactions from stakeholders, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) issuing a cautionary warning to importers and retailers about possible financial losses.
The significant drop in petrol prices follows a ripple effect caused by the Dangote Refinery, which recently cut its ex-depot price to N865 per litre, inclusive of regulatory charges. This strategic shift, coinciding with the federal government’s reintroduction of the naira-for-crude exchange policy, has placed local marketers in a tight spot, compelling many to slash pump prices despite dwindling profit margins.
IPMAN’s National Vice President, Hammed Fashola, told ireport247new.com that independent marketers should exercise caution in purchasing products, especially as Dangote and the Nigerian National Petroleum Company Limited (NNPCL) may further reduce prices without notice.
“My advice to co-marketers is to play safe. They have to be careful, and they should equip themselves with appropriate information before they make their purchases because prices can drop,” he warned.
According to Fashola, the current market volatility makes long-term planning difficult, especially for smaller importers who are struggling to keep up with frequent price adjustments initiated by Dangote’s 650,000 barrels-per-day refinery.
Investigations by ireport247new.com confirmed that at least four SGR filling stations along the Lagos-Ibadan Expressway and the Sagamu-Ijebu/Ode axis are dispensing fuel at N899/litre — a significant drop from the N940/litre range seen in recent weeks. This undercuts even Dangote’s partner, Heyden, which is currently selling at N915/litre.
A source close to the Dangote Group disclosed that the billionaire industrialist had initially planned a major price reduction on his 68th birthday, but the plan was delayed due to the temporary halt in the naira-for-crude policy. Nevertheless, Dangote managed to shave off N15 from the refinery’s ex-depot price last Thursday and is expected to continue the downward trend.
While consumers have welcomed the price cuts, importers and retailers are crying foul. Several anonymous sources within the importation chain revealed they were incurring massive losses — up to N2.5 billion daily and N76.5 billion monthly — as they struggle to sell imported petrol below cost to stay competitive.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has already protested the reintroduction of the naira-for-crude deal, claiming it gives the Dangote Refinery an unfair edge over other operators. However, the Federal Government ignored the pushback and reinstated the policy, arguing it would stabilize prices and improve access to refined products.
Energy analyst Henry Adigun emphasized the need for a level playing field in the downstream sector, warning that dominance by a single player could undermine competition and hurt consumers in the long run.
“Importers and refiners should engage in healthy rivalry. That’s the essence of deregulation,” Adigun stated.
Similarly, policy expert Israel Aye called on regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to enforce anti-monopoly rules and ensure transparency in price-setting.
Despite concerns about market dominance, Fashola defended Dangote’s operations, saying the refinery’s substantial local investment and job creation should not be overlooked.
“He’s not just importing. He invested billions, created jobs, and is trying to bring down fuel prices. If that benefits Nigerians, we should support him,” he said, adding that the competition will ultimately favor consumers if regulators maintain balance.
As the price war escalates, stakeholders are bracing for more turbulence. Industry insiders say the cost of petrol could drop further if global crude prices decline, with projections suggesting a possible retail price of N350/litre if crude falls to $50/barrel.
Meanwhile, NNPC has yet to respond to calls and messages seeking clarity on whether it plans to adjust its pump prices in response to the ongoing market shakeup.
For now, consumers appear to be the only winners in the unfolding drama. But for marketers and importers navigating Nigeria’s increasingly unpredictable petroleum landscape, survival may hinge on information, timing, and sheer resilience.