Petrol retailers along the Lagos-Ibadan Expressway are intensifying competition, cutting pump prices in a bid to retain customers. From N839 per litre last week, some filling stations along the Mowe–Ibafo axis of the highway in Ogun State have reduced prices to as low as N815 per litre.

A survey by The PUNCH over the weekend showed that several filling stations in the area sold premium motor spirit below N839, the price recommended by the Dangote Petroleum Refinery after it raised its gantry price from N699 to N799 two weeks ago.

It was observed that the SGR filling station in Mowe slashed its pump price to N812 per litre as of Sunday, the lowest in the area. Alade filling station near Ibafo sold petrol at N820 per litre, while Habeeb filling station dropped its price to N819 per litre.

Similarly, the two SAO stations in Mowe and Lotto dispensed PMS at N825 per litre, while Akiavic also sold the product at N825 per litre. NIPCO filling stations along the highway sold petrol at N828 per litre. Across the axis, all AP filling stations sold petrol for either N830 or N834 per litre.

As the price war deepens, the Dangote-partnered MRS filling station at Olowotedo was compelled to cut its pump price to N825 per litre from N839, although the outlet near the Redeemed Christian Church of God camp continued to sell petrol at N839 per litre, even as the neighbouring AP station reduced its price to N834 per litre.

The price cuts underscore growing competition among retailers, with lower pricing being deployed as a strategy to capture market share. The PUNCH reports that the landing cost of imported PMS is now lower than the gantry price of the product from the Dangote refinery. Data from the Major Energies Marketers Association of Nigeria show that the landing cost of imported petrol averaged N724 per litre as of last week.

This implies that Dangote’s gantry price is about N75 higher than the landing cost of imported PMS. However, an official of the Dangote refinery, who spoke with our correspondent on condition of anonymity because he was not authorised to speak to the press, said most filling stations selling petrol at cheaper rates lifted the product from the Dangote gantry.

According to him, Dangote’s N799 gantry price includes regulatory charges, giving retailers room to compete favourably with rivals. Before the recent price adjustment, The PUNCH reports that the landing cost of imported petrol was above the Dangote refinery’s ex-depot price of N699 per litre, making it difficult for importers to compete with Dangote-backed MRS filling stations.

However, the latest development shows that other filling stations are now selling petrol cheaper than MRS outlets.

Meanwhile, the Dangote refinery has warned that continued reliance on coastal delivery of petroleum products could push petrol prices close to N1,000 per litre in Nigeria. The company stressed that gantry loading remains the most efficient and cost-effective method for ensuring price stability for consumers.

In a statement, the refinery said its position was backed by sustained investments in critical infrastructure, including a “world-class gantry facility” with 91 loading bays capable of loading up to 2,900 tankers daily.

Operating on a 24-hour basis, the facility can evacuate over 50 million litres of premium motor spirit, 14 million litres of diesel, and other refined products each day.

When the President of the Dangote Group, Aliko Dangote, slashed the petrol gantry price by N129 in December, he said the move was to ensure Nigerians bought petrol at prices not exceeding N740 per litre during the Yuletide and to discourage importation.

Dangote accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of issuing “reckless” import licences in November while his storage tanks were full. As marketers complained of losses due to the price crash, Dangote said he was also losing more.

Data from the NMDPRA showed that imported petrol volumes fell from 52.1 million litres per day in November to 42.2 million litres per day in December, while the Dangote refinery’s supply rose from 19.5 million litres per day to 32 million litres per day over the same period.

Addressing allegations that it imports finished petroleum products, the refinery described such claims as misleading.

“While our Residue Fluid Catalytic Cracking Unit is currently undergoing maintenance, we only import intermediate feedstock in line with global industry practice. We challenge anyone with credible evidence of finished product importation to present it to the appropriate regulatory authorities. Such claims are often driven by interests seeking to justify continued dependence on fuel imports,” the refinery reiterated.

Explaining the benefits of domestic refining, the company said diesel prices have dropped from about N1,700 per litre to between N980 and N990, while PMS prices have declined from around N1,250 per litre to between N839 and N900.

It added that increased local supply has reduced fuel importation, eased pressure on foreign exchange, and supported a stronger naira, recently trading at about N1,385 to the dollar.

Meanwhile, the emerging price war highlights growing competition among petrol retailers as changing supply and cost dynamics reshape the market. The sustainability of the lower prices will largely depend on exchange rate movements, supply levels, and future pricing decisions by refiners and importers.