Oil marketers battle for customers amid price cuts
File photo of oil marketers’ vehicles parked for loading.
Price competition among fuel marketers has intensified as SGR Filling Station reduced the pump price of petrol to N805 per litre at its outlet along the Mowe axis of the Lagos–Ibadan Expressway.
Frontline Reporters gathered that the station lowered its price from N812 per litre on Monday, retaining its position as the cheapest retailer along the corridor. The move followed a price reduction by a nearby NIPCO outlet close to Lotto, which cut its rate from N828 to N812 per litre.
By Friday, several filling stations along the expressway were seen adjusting their pump prices in response to rivals’ moves. Frontline Reporters had earlier reported that petrol retailers in the area were intensifying competition by trimming prices to retain customers.
Along Ibafo, Alade Filling Station continued to sell petrol at N820 per litre, while Habeeb Filling Station maintained its price at N819 per litre. SAO stations in Mowe and Lotto dispensed PMS at N825 per litre, while Akiavic AP and other outlets across the axis adjusted their prices to remain competitive.
The Dangote-partnered MRS filling station at Olowotedo was compelled to cut its pump price to N825 per litre from N839 as motorists flocked to stations offering cheaper fuel. However, the MRS outlet near the Redeemed Christian Church of God camp continued to sell petrol at N839 per litre, even as a neighbouring AP station reduced its price to N834 per litre.
Similarly, outlets operated by Nigerian National Petroleum Company Limited in Lagos and Ogun States sold petrol at prices ranging between N837 and N840 per litre, depending on location and the intensity of competition.
On Tuesday, Dangote Petroleum Refinery and Petrochemicals reduced its petrol gantry price by N25 per litre, from N799 to N774 per litre. The refinery communicated the adjustment to marketers, stating that the new rate took immediate effect.
In a notice issued by its Group Commercial Operations Department, the refinery said, “This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre.”
Despite the reduction in ex-depot price, MRS and other partners have yet to reflect the cut at the pump. Many MRS outlets continued to sell petrol at N839 per litre, maintaining the same margins as when the gantry price stood at N799. This contrasts with previous instances where pump prices were adjusted immediately following increases in ex-depot rates.
In a comparison, Dangote noted that the latest adjustment further enhanced the competitiveness of locally refined products, adding that “the current landing price of imported PMS from Lome is about N793 per litre, compared to Dangote Refinery’s ex-depot price of N774 per litre.”
However, the Major Energies Marketers Association of Nigeria put the average landing cost of imported petrol at N722.08 per litre—about N52 lower than Dangote’s ex-depot price.
Meanwhile, Dangote Refinery announced that it has attained its full nameplate capacity of 650,000 barrels per day following the restoration and optimisation of its crude distillation unit and motor spirit production block, a feat it described as a global first for a single-train refinery of its size.
In a statement on Wednesday, the company said the milestone marked a critical phase in the ramp-up of Africa’s largest refining facility, adding that it had commenced a 72-hour intensive performance test run in collaboration with its licensor, UOP, to validate operational stability, efficiency, and compliance with global standards.
The refinery explained that the achievement followed a scheduled maintenance exercise on the Crude Distillation Unit and MS Block, after which both units were fully stabilised and optimised for steady-state operations.
The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, David Bird, said the seamless integration of the units highlighted the refinery’s engineering depth and operational resilience.
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