Marketers across Nigeria are rebranding their filling stations, abandoning the Nigerian National Petroleum Company Limited (NNPCL) amid fierce competition from the Dangote Petroleum Refinery.
The Dangote Refinery, valued at $20 billion, has significantly disrupted the fuel market by slashing petrol prices to N890 per litre. This move undercuts NNPCL’s loading costs, leaving marketers scrambling for better deals.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed this shift, stating, “Marketers are rebranding because NNPCL is no longer the sole importer and distributor of refined petroleum products. The game has changed.”
Price Competition Reshapes the Market
Filling stations in Lagos and Ogun States are visibly dropping the NNPCL logo, opting instead for private affiliations like MRS, which now offers cheaper fuel alternatives.
Petroleum expert Olatide Jeremiah explained, “Dangote’s pricing strategy has made it more profitable for independent marketers to purchase directly from its refinery. NNPCL’s inability to fix prices with Dangote left marketers with little choice but to seek alternatives.”
The competition has become intense since Dangote’s recent price reduction, which was attributed to lower international crude oil prices. Brent crude dropped to $76.76 per barrel in February, down from $81 in January.
Previously, marketers secured NNPCL franchise licenses to access cheaper products. However, deregulation in the downstream sector and Dangote’s entry have rendered the arrangement less lucrative.
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Akinola Ogunyolemi, Chairman of the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) in Lagos, noted, “Most filling stations bearing the NNPCL logo are independently owned. When contracts end or better offers arise, owners rebrand.”
Industry sources also revealed that Dangote executives held emergency meetings to address growing complaints from bulk buyers operating at losses of up to N31 per litre. The company’s price adjustment reflects an effort to stay competitive while maintaining profitability.
Nigerians Could See Cheaper Fuel Prices
The new price dynamics may benefit Nigerians. A marketer commented, “This is the effect of deregulation. Expect more price wars as competitors battle for market dominance.”
With landing costs for imported petrol now exceeding Dangote’s prices, industry analysts believe more marketers will switch allegiance. This could mark the beginning of a new era in Nigeria’s downstream oil sector, where competition drives lower prices for consumers.
