Nigeria’s downstream petroleum sector is embroiled in an intense price war triggered by the Dangote Petroleum Refinery’s decision to significantly slash its gantry price for Premium Motor Spirit (petrol) from N828 to N699 per litre.
Key Developments and Impact:
Price Reduction: Dangote Group President, Aliko Dangote, announced the N129 per litre cut and vowed to enforce a nationwide pump price of N739 per litre starting Tuesday (December 16, 2025).
Market Losses: The move has forced private depots and fuel importers to slash their prices to remain competitive, resulting in massive financial losses. Importers are projected to lose about N102.48 billion monthly, while the Dangote Refinery itself is projected to lose approximately N91.02 billion monthly due to the price cut, according to consumption figures.
Marketer Distress: The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that filling stations could lose over N80 billion as they are forced to sell existing stocks, purchased at higher rates (around N828/litre), below cost.
Political Conflict: The crisis escalated as Dangote publicly accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive of sabotaging the economy by granting import licenses despite sufficient local production.
Intervention: The House of Representatives Committee on Petroleum Resources (Downstream) has intervened and summoned both Dangote and the NMDPRA leadership to address the growing tension and identify sustainable solutions for the downstream sector.
While the fierce competition is a welcome relief for Nigerian consumers, with pump prices expected to drop to around N750 per litre, it has created a volatile market that analysts warn could undermine energy security.
What's Your Reaction?
Leave your vote
