The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the recent drop in petrol prices to increasing competition between Nigeria’s top refineries, Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC) Limited.
Market surveys indicate a significant reduction in pump prices across major retail outlets, driven by lower ex-depot prices from both the Dangote Refinery and the Port Harcourt Refinery.
For instance, NNPC Retail reduced its pump price from ₦1,030 to ₦965 per litre, while AA Rano and AYM Sharfa adjusted theirs from ₦1,070 to ₦1,020 per litre. However, some outlets, such as Conoil, continue to sell petrol at ₦1,090 per litre, unchanged since November.
IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, described the situation as a positive development for both independent marketers and consumers, citing enhanced price stability and availability due to the competition.
“It is a good development for independent marketers and for consumers too. Typically, prices rise during periods of increased demand, but now we are seeing the opposite. Availability has improved, and we’re witnessing a price war between the major players, NNPC and Dangote,” Ukadike stated in an interview with Vanguard.
He further expressed optimism that with the Warri and Kaduna refineries expected to come onstream next year, the competition would intensify, potentially leading to even more favorable outcomes.
Independent marketers are also benefiting from greater access to petroleum products. “When the price was around ₦1,300 per litre, most of our members could barely sell 5,000 litres daily. Now, we’re doing far better,” Ukadike revealed.
He added that marketers now have direct access to supplies from both refineries. “The NNPC portal is open for marketers to purchase as much product as they need, and Dangote has reduced its bulk purchase threshold from 10 million litres to two million litres, which is about ₦2 billion. This makes it more feasible for independent marketers to pool resources and place orders.”
The increased output from the Port Harcourt Refinery, with a capacity of 60,000 barrels per day (bpd), and the Dangote Petroleum Refinery, processing up to 560,000 bpd, is expected to influence Nigeria’s foreign exchange rate by 2025.
Before these refineries became operational, Nigeria relied heavily on imported petroleum products, making the current competition a significant shift toward self-sufficiency in the sector.