A fierce price war has erupted in Nigeria’s downstream petroleum sector as fuel marketers across the country slashed the pump price of petrol by up to ₦100, following a fresh price reduction by the Dangote Refinery.
The development comes as marketers struggle to remain competitive amid the availability of cheaper petrol supplied by the Lagos-based refinery, which has continued to disrupt the traditional fuel supply chain dominated by imports.
Findings across major cities revealed that several filling stations adjusted their prices downward in response to the Dangote Refinery’s revised ex-depot price, sparking intense competition among independent and major marketers.
Industry sources said the price cuts were aimed at preventing loss of customers, as motorists increasingly patronise outlets selling cheaper locally refined fuel. Some stations were observed selling petrol at significantly reduced rates compared to prices recorded just weeks ago.
The price war has brought temporary relief to consumers, many of whom welcomed the reductions after months of high fuel costs driven by subsidy removal, exchange rate pressures, and import-related expenses.
Analysts say the development highlights the growing impact of domestic refining on fuel pricing, noting that increased local supply could help stabilise prices and reduce Nigeria’s dependence on imported petroleum products.
However, marketers have warned that sustained price reductions may depend on crude supply, logistics costs, and regulatory clarity, urging the government to ensure a level playing field in the sector.
As competition intensifies, consumers are expected to benefit in the short term, while the long-term effects of the ongoing price war remain to be seen.
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