By Ali Elias
The Nigerian fuel market is undergoing a significant transformation as independent marketers abandon their franchise agreements with the Nigerian National Petroleum Company Limited (NNPCL) in favor of cheaper alternatives from the Dangote Petroleum Refinery.
Across Lagos and its environs, filling stations that once bore the NNPCL logo are being rebranded under private ownership, marking a shift in the nation’s downstream oil sector. This move is driven by the refinery’s recent reduction in its ex-depot price for Premium Motor Spirit (PMS) from N950 to N890 per litre, making it a more attractive supplier compared to imported fuel.
Industry insiders confirm that oil marketers, eager to maximize profit margins, are severing ties with NNPCL, which no longer holds a monopoly over petroleum imports. “Some marketers are changing and rebranding. Remember that there was a time NNPCL was the sole distributor and importer of petrol,” said Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN). “Now that the game has changed, you can even see some marketers switching to MRS because it is selling cheaper.”
Another industry expert, Olatide Jeremiah, CEO of petroleumprice.ng, explained that after Nigeria removed fuel subsidies, marketers initially sought NNPCL franchise licenses to access its subsidized petrol at lower costs. However, the emergence of Dangote Refinery, which sells at competitive prices without restrictive agreements, has disrupted this system.
“This was an avenue to make more profit because some marketers got a franchise license for one station but transported products to others to sell at higher prices,” Jeremiah revealed.
The price war in the downstream sector is intensifying, with reports that major marketers and NNPCL have sourced cheaper imported products to compete with Dangote. This competition has already led to Dangote’s price cut, benefiting Nigerian consumers in the long run.
As the battle for market dominance continues, experts predict further rebranding of filling stations and more price adjustments in the coming months.
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