Key Points

• Dangote cut petrol depot prices, setting off a nationwide price war.
• Importers and filling stations now sell fuel at heavy losses.
• Lawmakers stepped in as tensions rose in the fuel market.

Nigeria’s fuel market has entered a fierce price war after the Dangote Petroleum Refinery reduced the depot price of petrol.

The move has brought some relief to motorists but caused heavy losses for fuel importers, depot owners and filling station operators.

Even the Dangote refinery admits it is losing money as the battle for market share intensifies.

Industry figures show that petrol importers could lose up to ₦102.48 billion each month after Dangote reduced its depot price from ₦828 per litre to ₦699.

At the same time, the refinery itself may lose about ₦91 billion in one month due to the lower price.

Filling Stations Sell Below Cost

Many Nigerians have welcomed the lower petrol price, especially during the Christmas season. However, many filling station owners say they are now selling fuel at a loss.

Most stations still have petrol bought at the old, higher price. To compete, they must sell cheaper fuel below what they paid for it.

Dangote announced the ₦129 per litre price cut on Friday and confirmed that it took effect from December 12. The company also introduced a 10-day credit option for marketers.

On Sunday, Dangote Group President Aliko Dangote said filling stations must sell petrol at ₦739 per litre nationwide.

He said MRS stations started selling at the new price immediately, with other partner stations expected to follow.

Depots Rush to Cut Prices

Fuel importers and private depot owners quickly lowered prices to avoid losing customers.

Market data from Petroleumprice.ng show that petrol prices at Lagos depots dropped by about 14 percent within days.

Several depots reduced prices from around ₦828 per litre to about ₦710.

MENJ depots cut prices from ₦828 on December 8 to ₦710 by December 15. Integrated, Bovas and A.A.

Rano depots made similar reductions. Dangote-linked depots sold petrol slightly cheaper, forcing others to adjust.

Billions Lost Across the Market

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that Nigeria uses about 50 million litres of petrol every day. That equals about 1.5 billion litres each month.

Dangote refinery supplies about 23.52 million litres daily, while importers supply about 26.48 million litres.

Because Dangote’s price is ₦129 lower per litre, importers could lose about ₦3.41 billion every day, or ₦102.48 billion each month.

Dangote refinery could lose about ₦91 billion monthly based on its supply volume.

Marketers Raise Alarm

The Independent Petroleum Marketers Association of Nigeria warned that many marketers are under severe pressure.

Its spokesman, Chinedu Ukadike, said filling stations could lose more than ₦80 billion as cheaper fuel floods the market.

He praised the price cut for helping Nigerians but said marketers who bought fuel at ₦828 per litre would suffer major losses.

Ukadike called on Dangote refinery to support marketers through discounts on future fuel purchases.

Dangote Responds

Dangote said the refinery is also losing money and cannot carry the burden alone. He revealed that the refinery lost about ₦60 billion in November after earlier price cuts.

He said continued fuel imports threaten local refining and insisted that his company would not back down despite the losses.

Energy experts warned that rising tension between regulators and fuel companies could affect fuel supply and stability.

The chief executive of Petroleumprice.ng, Jeremiah Olatide, urged regulators and operators to work together, warning that conflict could weaken Nigeria’s energy security.

Lawmakers Step In

The dispute took a political turn after Dangote accused the fuel regulator of allowing unnecessary fuel imports.

The House of Representatives Committee on Petroleum Resources (Downstream) summoned Dangote and the regulator to explain the growing tension and protect the fuel market.

For now, Nigerians are enjoying cheaper petrol at some filling stations. Behind the scenes, a tough price war continues, with billions of naira at stake.