Petrol Price War Heats Up as Importers Undercut Dangote Refinery

A fresh wave of competition has erupted in Nigeria’s fuel market as independent importers slash petrol prices below those offered by the Dangote Petroleum Refinery. This pricing move comes just as Dangote Group President, Alhaji Aliko Dangote, renews calls for a federal ban on fuel importation to protect local refining efforts.

Across parts of Lagos and Ogun States, petrol prices have dropped beneath N860 per litre. Stations affiliated with Dangote such as MRS and Heyden currently sell between N865 and N875, while some independent outlets like SGR in Ogun have gone as low as N847. Depot-level prices reflect a similar trend, with some importers selling as low as N815 per litre, undercutting Dangote’s N820 price.

According to marketers, this is a deliberate survival tactic by importers struggling to stay afloat after Dangote’s refinery Africa’s largest initiated aggressive price cuts earlier in the year. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the price drop and defended the free-market system. “This is the beauty of market liberalisation. No one should be stopped from importing petroleum products,” he said, adding that local refining and proper regulatory checks can prevent substandard fuel circulation.

But Dangote views this pricing strategy as harmful to Nigeria’s industrial future. Speaking at a recent event in Abuja, he decried what he called the “dumping” of cheap and sometimes toxic fuel—some allegedly originating from Russia into the Nigerian market. He argued that this undercuts local production and discourages further investment in the refining sector.

Dangote urged the Federal Government to extend its ‘Nigeria First’ policy to the petroleum sector and adopt protective measures similar to those implemented in the U.S., Canada, and the EU. “We are calling for deliberate steps to protect domestic refiners,” he stressed, warning that local producers are forced to sell below cost, creating an unsustainable playing field.

Marketers, however, push back on these calls, warning that any ban on fuel importation could stifle competition, inflate prices, and place an unnecessary burden on Nigerian consumers. As the debate rages on, consumers are watching closely hoping that the rivalry delivers long-term relief at the pumps.