Marketers Defy Dangote’s N820 Petrol Supply Price, Maintain High Pump Rates

Despite receiving petrol supplies from the Dangote Refinery at N820 per litre with no logistics charges, major marketers have yet to reduce pump prices at their filling stations, findings revealed on Sunday.

Visits to several stations in Lagos and Ogun States showed that most outlets belonging to Dangote’s partner marketers — including Heyden, AP, Ardova, and MRS — still sold petrol between N863 and N870 per litre, far above the projected N841 to N851 benchmark set under the refinery’s new pricing framework.

Only a few MRS outlets made adjustments, with one station at Alapere in Lagos selling at N841 per litre, which drew long queues from motorists seeking cheaper fuel. However, the relief was not uniform, as another MRS station in Olowotedo, Ogun State, sold at N875 per litre.

Heyden outlets were observed dispensing petrol at N863 per litre, while Ardova and other major players maintained rates between N865 and N870.

### Background to the Price Adjustment

The Dangote Refinery had announced that, beginning September 15, petrol pump prices would fall nationwide following the deployment of more than 1,000 compressed natural gas-powered trucks for direct fuel distribution. The initiative was designed to eliminate logistics costs and peg the ex-depot price at N820 per litre, translating to pump prices of N841 in Lagos and other South-West states, and N851 in Abuja, Rivers, Edo, Delta, and Kwara.

Marketers including Conoil, Eterna, Golden Super, Nepal Energies, Kifayat Global Energy, and Riquest and Gas had signed up under the logistics-free distribution scheme, raising expectations of cheaper fuel for motorists.

Marketers Hold Back on Reductions

Almost three weeks after the scheme began, most filling stations have yet to reflect the lower prices. Some operators claim the delay stems from old stock purchased at higher costs still in their tanks.

But a Dangote Refinery source dismissed this explanation, insisting that many marketers had already received new supplies and had no justification for keeping prices high.

“It’s unfair to keep selling at old rates. They are receiving the product at N820 per litre with free logistics, yet they’re still selling higher,” the source, who requested anonymity, told The PUNCH.

The official, however, noted that the refinery could not compel marketers to adjust prices.
“We can’t enforce pump prices; it’s only on recommendation, since marketers argue that the law does not empower us to fix rates, and NMDPRA appears to agree,” the source explained.

Market Pushback and Concerns

Not all stakeholders support Dangote’s pricing approach. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) recently criticised the refinery’s frequent price cuts, describing them as destabilising for the downstream sector.

DAPPMAN Executive Secretary, Olufemi Adewole, argued that presenting the reductions as patriotic gestures ignored their disruptive market impact.
“These cuts are often introduced when other importers have active cargoes at sea or in tanks, creating shocks that distort competition and impose financial strain on market participants — including Dangote’s own domestic customers,” he said.

NNPC and Independent Marketers Silent on Changes

For over a year since commencing petrol production, the Dangote Refinery has overtaken the Nigerian National Petroleum Company Limited (NNPC) as the market’s de facto price trendsetter.

However, NNPC spokesperson, Andy Odeh, confirmed that the company had not adjusted its pump prices.
“Our current pump price in Lagos remains N865. We have not made any changes,” he stated.

Independent marketers had earlier pledged to cut prices once Dangote’s direct supply reached them, but as of Sunday, there were no significant adjustments across most outlets.

Meanwhile, queues persisted at the few stations offering lower prices, with motorists hoping the refinery’s logistics-free scheme will eventually translate into broad-based relief.