Dangote Eying N650 Per Litre In Petrol Price War

Petrol prices in Nigeria may be headed downhill to as low as N650 per liter in the first quarter of 2025 as Africa’s largest refiner, Dangote Refinery prepares for a price war with the Nigerian National Petroleum Corporation Limited and independent marketers.

GWG.ng reports that in a move that shocked the industry last week Dangote Refinery offered the nation a Christmas package in the reduction of its selling price to N899 per liter.

The price of petrol in Nigeria is headed downhill with prospects of the essential commodity selling for N650 per liter in the first quarter of 2025 as a price war unfolds in the deregulated sector.

GWG.ng reports that Africa’s largest crude oil refiner, Dangote Refinery with its outpost in the Lekki area of Lagos is set to see off what associates allege as the plot of the Nigerian National Petroleum Company Limited and marketers to frustrate the business.

The price war follows the determination of the local importers to continue the importation of refined petroleum from outside Africa and their refusal to patronize the local refinery.

As a way of bringing them to patronize his refinery, Dangote recently crashed petrol price per liter to marketers at N899. Two days later, the NNPCL followed suit bringing prices for distribution to its outlets at N899 in selected locations in the Lagos area to N899.

Dangote with a production capacity of 600,000 litres per day is frustrated that the major marketers have continued to boycott his refinery and instead resorting to foreign imports. The marketers have in the past accused Dangote of not being sincere in his pricing template alleging that it was better to import from outside Africa than purchase from the local refinery.

Industry sources, however, assert that Dangote may now be determined to break the back of the importers with his determination to further crash prices to frustrate the importers.

“Dangote is set to break the back of the importers and we hear that the refinery is set to see off the back of the importers by bringing price of petrol to as low as N650 per liter.”

GWG.ng gathered that Dangote as part of its pricing strategy is now expanding its storage facilities to accommodate more refined products and at the same time expanding its foreign markets ahead of the price competition war with the local marketers.

If the Dangote Refinery goes ahead with its plan the move could lead the marketers to heavy losses.

Marketers as at December 13 were importing petrol at a price of N900.28 per liter which is higher than the N899 Dangote is ready to sell to them.

Meanwhile, the decision of the NNPCL to sell its product at prices in the South-South region above what it sells in Lagos has attracted condemnation from the oil producing region.

A former senator from the region speaking to GWG.ng affirmed that it was illogical to sell petrol at a price higher in the oil producing Niger Delta than it is sold in Lagos.

NNPCL had in a recent memorandum to marketers said that marketers would buy the product at N899 per litre in Lagos State, at a price that matches the price offered by Dangote refinery.

The NNPCL had also said that it would sell to marketers at Warri, Oghara, Port Harcourt, and Calabar depots at N970 per litre.

“It doesn’t make sense to sell petrol in the Niger Delta where oil is found at a price higher than what it sells in places not producing it,” the former lawmkaer said.

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