Table of Contents
- Price War in the Oil Sector
- Dangote Refinery's Pricing Strategy
- Current Retail Prices
- Market Response from Retailers
The ongoing price war in the country's oil downstream sector has taken a new turn as petrol retailers have lowered their fuel prices below Dangote Refinery's fixed rate of N739 per liter to gain a competitive edge.
It is worth noting that Aliko Dangote, the president of Dangote Refinery, initiated a fuel price of N739 per liter at MRS filling stations nationwide to outpace petrol marketers and importers.
This strategy followed Dangote's reduction of its ex-depot price to N699 per liter, establishing the petrol retail price at MRS filling stations at N739 per liter.
Since December of last year, this has given Dangote Petrol a price advantage, as other petrol retailers, including the Nigerian National Petroleum Company Limited, have been selling the product for between N815 and N840, depending on the location.
However, in a recent development, fuel retailers have adjusted their prices to fall below Dangote petrol prices in Lagos.
As of Sunday, NIPCO offered PMS at N738 per liter, SAO filling stations priced it at N735, and Akiavic sold the product at N737. An AP filling station located next to an MRS outlet in Mowe, Ogun State, reduced its price to N736 per liter.
Conversely, in Abuja, fuel prices at NNPCL, Rano Oil, Empire Energy, NIPCO, AA Rano, and AYM Shafa ranged from N815 to N839 per liter as of Monday morning.
Previously, the spokesperson for the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, informed DAILY POST that their members remain optimistic, despite the availability of cheaper petrol for sale to Nigerians.
Frequently Asked Questions
What is the current price of petrol at Dangote Refinery?
The current price of petrol at Dangote Refinery is fixed at N739 per liter.
How do current petrol prices compare across different retailers?
Current petrol prices vary by retailer; for instance, NIPCO sells at N738, SAO at N735, and Akiavic at N737 per liter in Lagos, while prices in Abuja range from N815 to N839 per liter.
What is the impact of the price war on petrol retailers?
The price war has prompted petrol retailers to lower their prices in order to remain competitive, which is beneficial for consumers seeking lower fuel costs.
Eze Chidiebere Paul
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