Oil marketers are dropping their affiliations with the Nigerian National Petroleum Company Limited (NNPCL) due to fierce competition with Dangote Petroleum Refinery. With Dangote reducing its loading costs, marketers are rebranding their stations to secure cheaper fuel, reshaping Nigeria's fuel sector.
A significant shift is happening in Nigeria's oil sector, as oil marketers move away from their partnerships with the Nigerian National Petroleum Company Limited (NNPCL). This change comes amid fierce competition from Dangote Petroleum Refinery, which has dramatically reduced its fuel loading costs. Several marketers, especially in Lagos, are rebranding their stations to align with Dangote's lower prices for refined products.
The reduction in Dangote’s ex-depot petrol price from N950 to N890 per litre has spurred many filling stations to abandon their previous affiliations with NNPCL. These stations, which once proudly displayed the NNPCL logo, are now transitioning to private oil brands to benefit from more competitive pricing.
This price war, ignited by Dangote’s pricing strategies, has caused a major disruption in the Nigerian downstream sector. With Dangote offering cheaper fuel, marketers are keen to secure better margins, leading to a widespread shift in the market. Independent marketers are increasingly abandoning their NNPCL licenses, choosing instead to source fuel from Dangote’s refinery, where costs are lower than imported petrol.
Experts argue that the deregulation of the sector has opened up room for more competition, and marketers are seizing the opportunity to rebrand to maximize profit. As the price war continues, the dominance of NNPCL in the market may diminish further, making way for private players like Dangote to take the lead in Nigeria's fuel distribution sector.
