Oil marketers have refuted claims that some retail petroleum outlets are selling fuel cheaper than the N739 per litre at Dangote Refinery designated filling stations, attributing such reports to speculation.

They said that apart from MRS filling stations, which are affiliated to Dangote Petroleum Refinery, they do not think any other marketers or retail filling stations are selling below that price.

The marketers noted that the favourable price is the major reason why you see longer queues of vehicles at MRS filling stations across the country than other retail outlets, as Nigerians prefer cheaper petroleum products.

Sacrificing margins for market share
In an exclusive interview with Nairametrics, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, insisted that he does not think any marketer is selling petrol lower than the price announced by Dangote Petroleum Refinery.

Ukadike said, ‘’I don’t think so. Because when you go to any MRS filling station, you will see a queue. If there is any other person who is selling lower than that, you will see more queues. Actually, Nigerians like low-pricing petroleum products.

’Well, you know, that’s investigative journalism now, some of them are speculation by some people who are air-conditioned and hotel room writers.

‘’Its not possible (selling below Dangote price). That is why we see that queue, that’s for those who are so patient enough to wait for the queue, for those who are not patient enough to wait can go and get at N770, N780 per litre.’’

A retail petrol operator, Edwin Ogah, who stated that he may not have full information on the pricing of these products at the filling stations, however, revealed that many marketers are sacrificing margins at this moment to maintain market share.

‘’Well, I may not have the full information about this. But what I can tell you is that many marketers are sacrificing margins temporarily to maintain market share. However, this is not widespread or sustainable for long, especially given logistics costs,‘’ Ogah said.

Price war
About a week ago, there were reports of a price war in the downstream sector of the oil industry, with claims that some retail outlets have dropped the prices of petrol below the N739 per litre earlier announced by Dangote Petroleum Refinery.

It was reported that some filling stations sold petrol at prices ranging from N735 per litre, N737 per litre, to N738 per litre.

Dangote Petroleum Refinery had earlier announced a reduction in the gantry price of petrol to N699 per litre from N828 per litre, effective December 11, 2025.

As a follow-up to this announcement, Aliko Dangote, during a press briefing, said that petrol prices will drop to ₦739 per litre nationwide with initial implementation at MRS stations in Lagos, assuring that this will be enforced.

However, some oil marketers raised alarm over significant operational losses due to these volatile petrol price drops (especially from Dangote Refinery), thereby selling their products below cost.

Locally refined petrol has better quality
On the controversy around imported petrol, which is alleged to be of low quality, the oil marketers pointed out that petroleum products refined locally are of better quality, especially due to strict regulatory controls.

Ogah said, ‘’From an industry perspective, locally refined fuel is generally of better and more consistent quality. Products from refineries like Dangote are produced under strict process controls and are tailored to Nigerian climatic and engine conditions.

‘’Imported fuel, on the other hand, often comes from multiple sources, and quality can vary depending on the blend, storage conditions, and transit time. While imported products still meet regulatory standards, locally refined fuel tends to burn cleaner, give better engine performance, and reduce maintenance issues.’’

Also, lending his voice to the conversation, Ukadike said, ‘’Well, for now, I can’t really be able to, within this period under review, that Dangote has given the independent marketers leverage to buy directly from this gantry.

‘’All those things are gone in the past. And I also believe that some 90% of PMS consumed here in Nigeria is locally produced by Dangote. So, the issue of the low-quality fuel right now does not really arise.’’

Ukadike also said that the issue of oversupply of petroleum products cannot arise by the time other local refineries like BUA and NNPC commence operations. He, however, noted that the only situation that will arise is probably a price war among the oil marketers, with the excess products exported to other African countries.

‘’The issue of oversupply does not arise. You understand me? Right. What will arise is that maybe there will be a price war and sufficiently, they can also start exporting to other African countries,‘’ the IPMAN Spokesman added.

What you should know
In a related development, Nairametrics had in December 2025, reported that the Dangote Petroleum Refinery had reduced the minimum order for petrol from 500,000 litres to 250,000 litres at the gantry price of N699 per litre, allowing more marketers to purchase directly from the facility.

The oil firm further stated that both existing and new customers can access a 10-day credit facility, backed by a bank guarantee, when purchasing a smaller volume.

Meanwhile, Dangote Petroleum Refinery had urged Nigerians to report any MRS filling stations selling petrol, at a price above the approved N739 per litre, noting that the cut in prices represents a significant milestone in the refinery’s mission to deliver affordable fuel to Nigerians and stabilise the downstream petroleum market.

The refinery also issued a stern warning against attempts by “unscrupulous” operators to create artificial scarcity in response to the price reduction, calling on government agencies to act decisively.