Lagos, Nigeria – July 30, 2025
In a surprising move that has sparked wide public interest, independent fuel marketers across Nigeria have begun selling petrol at prices lower than those offered by the Dangote Petroleum Refinery — Africa’s largest privately-owned refinery.
The price cut comes amid fierce competition and what industry experts are calling a “market correction.” Dangote Refinery, which began supplying petrol earlier this year, has been expected to lead the way in stabilizing fuel prices across Nigeria. However, several independent marketers are now selling fuel for less than Dangote’s current wholesale price, forcing many to ask: how are they doing it?
Some marketers are reportedly sourcing their petrol from cheaper international suppliers or clearing out old stock bought at lower prices. Others may be cutting profits to attract more customers, especially in areas where purchasing power has dropped due to inflation and economic hardship.
For many consumers, lower pump prices offer welcome relief, especially at a time when transportation, food, and living costs remain high. In some areas, petrol is now being sold for ₦580–₦600 per liter — below Dangote’s benchmark of around ₦630.
But analysts warn that this pricing trend might not last. “What we’re seeing is more of a short-term price war,” said oil and gas analyst Musa Ayodele. “Smaller marketers are trying to stay relevant in a space where Dangote dominates. But this kind of underpricing may not be sustainable unless global oil prices fall or the government steps in with regulations.”
As the competition heats up, industry observers are calling for more transparency and regulation to ensure fair pricing and long-term stability in Nigeria’s fuel market. While the lower prices may benefit consumers today, experts say long-term solutions — like improving local refining capacity and ensuring fair market practices — are what will truly ease Nigeria’s fuel challenges.
Petrol is cheaper today, but the bigger question is for how long. What looks like good news at the pump may be part of a deeper struggle in Nigeria’s energy sector.
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