A fresh round of price reductions is shaking up Nigeria’s downstream oil sector, as Dangote Refinery slashed its ex-depot price of Premium Motor Spirit (PMS) to ₦835 per litre, triggering immediate reactions from independent importers and private depots. The aggressive pricing move signals a deepening market contest between Dangote and import-dependent marketers, with both sides vowing to stay in the game.
The price adjustment follows a drop in the petrol landing cost to ₦853/litre, influenced by declining global crude oil benchmarks and relative exchange rate stabilisation. In response, private depots have moved quickly to lower their prices to remain competitive.
Depot Reactions: Price Cuts at BOVAS and SAHARA
According to data provided on April 16, the following adjustments were recorded among major Apapa-based depots:
- BOVAS (Mosheshe Industrial Area, Kirikiri Town Water Front, Lagos, Nigeria)
- PMS Price (Today): ₦850.00
- PMS Price (Yesterday): ₦865.00
- SAHARA (Ibru Yard, Ibafon, Apapa, Lagos, Nigeria)
- PMS Price (Today): ₦850.00
- PMS Price (Yesterday): ₦865.00
These depot-level reductions reflect the mounting pressure Dangote’s pricing strategy is placing on the market. Analysts say this is the first major signal that Nigeria’s pricing structure is entering a new era of competition one where local refining is now influencing importer behaviour.
Importers Refuse to Back Down
Despite Dangote’s dominance, major importers have made it clear they will not exit the business. Instead, they are pledging to “stay in the fight” by maintaining strong supply volumes and adjusting their pricing in response to Dangote’s moves.
“This is a healthy development for the market,” said a senior marketer who requested anonymity. “We are not leaving this space for Dangote. We are ready to compete while supporting the push for domestic refining. This is not an exit it’s an evolution.”
What’s Driving the Price War?
Several factors are contributing to this intensified price competition:
- Landing Cost Drop: As of mid-April 2025, petrol landing cost fell to ₦853 per litre, down from highs earlier in the year, thanks to Brent crude prices sliding below $62 per barrel and slightly improved foreign exchange availability.
- Naira for Crude Policy Pressure: With Dangote Refinery benefiting from domestic crude allocation in naira, its production costs are lower than dollar-based importers, giving it a pricing edge.
- Depot-Level Price Adjustments: In addition to BOVAS and SAHARA, other depots are expected to follow suit in the coming days as they attempt to maintain market share in the face of reduced demand and stiffer pricing competition.
Implications for Consumers and the Market
While these price cuts are taking place at the depot level, their impact on pump prices will depend on logistics costs, retailer margins, and regional transport dynamics. In Lagos and parts of Ogun State, pump prices have started trending slightly downward, but in the North, retail prices remain close to ₦1,000 per litre.
For marketers, the price war may reduce profit margins but could benefit long-term industry health by pushing for efficiency, transparency, and fair pricing.
With Dangote Refinery setting the tone, and importers unwilling to cede control, Nigeria’s fuel market is entering an era of aggressive price competition. As more depots align their prices closer to Dangote’s ₦835/litre benchmark, consumers may begin to feel some relief especially if logistics bottlenecks are addressed and supply remains consistent.
Market watchers expect this trend to continue in the coming weeks, with both sides digging in for a longer contest that could reshape Nigeria’s downstream sector for years to come.
