Fuel Price War Turns Brutal as Petrol Sinks Below Dangote Benchmark

Nigeria’s petrol market has entered a brutal price war as retail outlets slash pump prices below Dangote’s N739 benchmark, triggering losses for importers, frantic undercutting among stations, and a fierce scramble for motorists

Petrol Prices Collapse Faster Than Expected

The petrol market is no longer playing defence. It is in full attack mode. SKYTREND NEWS gathered that retail outlets across Lagos and Ogun states have pushed Premium Motor Spirit prices below the Dangote endorsed N739 per litre, signalling a ruthless price war that is forcing marketers to choose between bleeding cash or losing customers. What began as a refinery led price reset has now mutated into a street by street battle where survival depends on who blinks last.

Pump Prices Break Psychological Floor

According to SKYTREND NEWS findings, several filling stations are now openly selling petrol cheaper than Dangote backed MRS outlets. NIPCO dropped to N738 per litre, SAO slid further to N735, Akiavic followed at N737, while an AP outlet in Mowe undercut rivals at N736. The result is instant. Motorists migrate to the cheapest pumps, queues evaporate elsewhere, and higher priced stations sit idle.

Retailers Spy on Rivals Like Hawks

SKYTREND NEWS reports that station managers now monitor competitors in real time, adjusting prices within hours to avoid being deserted. This is no longer about cost recovery. It is about market share. Operators privately admit that pricing decisions are now driven by fear of isolation rather than margins, with many selling below landing cost just to stay visible.

Importers Bleed as Dangote Resets the Game

Data from industry sources reviewed by SKYTREND NEWS show the average landing cost of imported petrol hovering around N762 per litre, while Dangote’s ex gantry price remains N699. Despite the gap, importers are slashing prices aggressively, absorbing losses to remain competitive. Several depot owners admit the market is punishing hesitation, not inefficiency.

Dangote Draws the Line and Dares the Market

SKYTREND NEWS gathered that the turning point came when the refinery slashed gantry prices by N129 in December and publicly warned against sabotage. Aliko Dangote made it clear that petrol should not sell above N740 nationwide through January. The warning sent shockwaves across the downstream, forcing reluctant marketers into compliance or irrelevance.

Demand Follows Price Not Loyalty

Industry insiders told SKYTREND NEWS that loyalty to brands has evaporated. Motorists now chase price alone. This shift has flipped traditional dominance, as MRS stations that once attracted queues now face competition from smaller outlets willing to undercut by a few naira. In this market, perception of cheapness is everything.

Marketers Admit This Is Pure Survival

According to SKYTREND NEWS findings, operators insist this is not a refinery versus importer war. It is survival economics. With bank interest piling daily, holding stock at higher prices has become a liability. As one marketer put it, the market regulates itself, and sentiment has turned brutally unforgiving.

Dangote Expands Supply and Opens the Gates

The refinery disclosed that PMS offtake rose from 600 million litres in October to 1.5 billion litres in December, with daily gantry loading between 31 and 48 million litres. SKYTREND NEWS reports that minimum purchase volumes were reduced to 250,000 litres and a 10 day credit window introduced to widen participation and flood the market with locally refined fuel.

Imports Lose Their Edge

According to SKYTREND NEWS gathered information, imported petrol is now struggling to justify its presence as local supply expands. The refinery maintains that the November import surge was driven by licensing decisions, not supply gaps, reinforcing the narrative that the current price collapse is market driven, not artificial.

What Happens Next

Analysts warn that prolonged undercutting could force weaker operators out, consolidate retail power, and permanently reset consumer expectations. For now, Nigerians are winning at the pump, but the industry is entering a defining stress test.

SOURCE: Skytrend News