Marketers Plan to Undercut Dangote, NNPC on Petrol Prices

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•As Dangote Refinery prices hover above N1,000 per litre, marketers prepare to offer cheaper imports

Oil marketers have announced intentions to import petrol and sell it at prices lower than those of Dangote Petroleum Refinery, which currently charges between N1,015 and N1,028 per litre. The announcement comes amid rising concerns over petrol costs in Nigeria.

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Data from the Major Oil Marketers Association of Nigeria revealed that the landing cost of petrol as of October 31, 2024, stands at N978.01 per litre. This cost is critical as marketers aim to provide a competitive alternative to the high prices set by both Dangote and the Nigerian National Petroleum Company Limited (NNPCL).

Marketers have claimed that imported petrol could be significantly cheaper, prompting concerns over market dynamics. An anonymous source stated, “Imported PMS is cheaper than Dangote’s price,” indicating a strategy to undermine the refinery’s pricing power.

The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has confirmed its plans to sell imported petrol at rates well below those of Dangote and NNPCL. PETROAN’s Publicity Secretary, Dr. Joseph Obele, announced plans to import petrol at around N800 per litre, pending regulatory approval.

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Obele explained that the high prices from Dangote may be a reflection of elevated costs associated with imported crude. He criticized the lack of transparency regarding pricing, noting that NNPCL acts as an intermediary, buying from Dangote and reselling without public disclosure.

With international crude prices recently falling, the potential for lower landing costs presents an opportunity for marketers to address consumer concerns about fuel affordability.