As the Federal Government ordered the return of the naira-for-crude policy, the Independent Petroleum Marketers Association of Nigeria has warned marketers and importers against the losses that may follow any sudden price cut.

This is even as an independent marketer, SGR dropped the price of premium motor spirit to N899 per litre across its filling stations in Ogun State.

Speaking to our correspondent, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, advised fellow marketers and importers to play safe while making purchases because there could be sudden price slashes by Dangote, the Nigerian National Petroleum Company Limited or other major players in the sector.

Our correspondent reports that following the return of the naira-for-crude deal by the Federal Government last Wednesday, the Dangote refinery Thursday dropped its ex-depot petrol price to N865, signalling the beginning of another round of price competition in the downstream sector.

The PUNCH reports that a notice sent to marketers by the refinery indicated that a litre of petrol will now be sold at N865 inclusive of charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

It disclosed that other products are still priced in dollars, while the sale of PMS via coastal vessels remains on hold.

With the latest development, our correspondent observed that filling stations have started reducing their pump prices.

About four SGR filling stations along the Lagos-Ibadan Expressway and the Sagamu-Ijebu/Ode road dropped their PMS prices to N899/litre, being about the cheapest in the axis, and N16 below the price offered by Dangote partner, Heyden, which is also on the road.

Most of the filling stations in Lagos and Ogun State have dropped their prices from over N940 to N930 or N920 per litre.

Dangote refinery’s partner, Heyden, reduced its pump price to N915 on Friday to reflect the marginal reduction in the ex-depot price.

A source who pleaded anonymity told our correspondent that Mr Aliko had since last month planned to announce a significant petrol price drop on his 68th birthday, which was on Thursday.

However, the source said the plan could not materialise as planned due to the break in the naira-for-crude deal, saying the billionaire businessman was able to reduce about N15 from its ex-depot price on his birthday and may do more going forward.

It could be recalled that since December 2024, the Dangote refinery has been ahead of other key players in the downstream sector, changing prices whenever it felt there was a need for that. It was observed that the NNPC reacts to market pressure by lowering its price anytime Dangote calls the shots, a total departure from tradition.

Before the Dangote refinery came on stream, the NNPC used to dictate the prices of PMS under a regulated petroleum sector. Until September 2024, the NNPC was the sole importer of PMS into Nigeria.

However, a report by Energy Intelligence said the 650,000-barrel-per-day Dangote refinery “has broken state-owned NNPC’s tight monopoly on refining and products marketing in Nigeria and has structurally shifted Atlantic Basin gasoline balances, pressuring European margins.”

The IPMAN Vice President, Fashola, warned marketers and importers to exercise caution to avoid running into debt when the major players slash the prices without prior notice.

“My advice to the co-marketers is to play safe. They have to be careful, and they should equip themselves with appropriate information before they make their purchases because prices can drop.

“That is the only way to go about it if we want to avoid losses.

“And for importers, they should do the same thing. They should do their homework before they bring in products. They should look at what is happening locally in the Nigerian market and check it out. If they can make money, they can bring it. It is good. It is an alternative,” he stated.

Fashola said it will be for the good of the masses if Dangote and other refineries lower the prices of fuel.

Contrary to claims, Fashola said the Dangote refinery is not dictating the price, but it is ensuring a competitive market.

“Dangote is a businessman, and Dangote refinery is a private entity, and we have other players too. So, once we have players in the field, everybody wants to take advantage of the market.

“If you can flashback, you will see that initially, people were asserting that imported petrol was cheaper than Dangote products that were locally refined. And he reacted to that by reducing prices, which is good. If Dangote reduced prices, and if the importers could bring in the product at a good price, they would all come to the same market. Competition will set in, and that is the beauty of deregulation—an open market and an open field for everybody to operate,” he said.

Fashola suggested that competitors should not oppose the naira-for-crude deal based on the thought that it is giving an advantage to the Dangote refinery over them.

He maintained that the refinery should be supported, considering the huge investment involved.

“Maybe the opposite side is looking at it like the Federal Government is giving an advantage to the Dangote refinery over other competitors, but we have to consider his investment in Nigeria.

“He is quite different from somebody who is just importing. Somebody who invested money, employed people, and so on – I think we need to support him. So, if that is the way of supporting him and he is showing appreciation by reducing prices, I think we are good to go,” Fashola stated.

We warned against a monopoly where one player dominates the affairs of the sector, saying, ”We don’t want that; let’s have alternatives.”


Recall that with the supply of crude in naira from October till mid-March, the Dangote refinery continued to crash petrol prices across the country. From about N1,100 per litre, the company slashed the price of premium motor spirit to N860.

But importers of petroleum products lamented the repeated reduction of prices by the refinery.

Some of the importers who spoke with our correspondent anonymously lamented that they were compelled to sell below their costs, as consumers only buy from where the product is cheaper.

The PUNCH reports that importers lost an average of N2.5bn per day and N76.5bn in a month due to Dangote’s sudden price changes until the naira deal was halted by the NNPC last month.

While Nigerians were rejoicing over the price slashes, fuel importers and retailers said they were counting losses.

According to some of them, Dangote was planning a monopoly by making importation less attractive with how it was dropping the prices of petrol and diesel.

The importers said they managed to sell their imported products with little or no margin due to the need to compete well in the market.

With the belief that the naira-for-crude deal was giving Dangote an undue advantage over its competitors, the Depot and Petroleum Products Marketers Association of Nigeria did not mince words when it asked the Federal Government to cancel the deal, arguing it was inimical to the country’s economy.

However, the Federal Government ignored DAPPMAN and restored the naira transaction as fuel prices surged after the Dangote refinery stopped selling petrol in naira to marketers, from N860 to N930.

Meanwhile, the Crude Oil Refinery Owners Association of Nigeria has predicted that the price of petrol could drop to N350 per litre if the price of crude oil eventually drops to $50 per barrel.

Experts want competitive market

Experts who spoke with our correspondent said the downstream should not be dominated by a single player, as that may kill competition and drag up the price of petrol.

An energy expert, Henry Adigun, noted that the downstream sector should be a level field for both importers and local producers.

According to Adigun, both importers and refiners should engage in healthy rivalry for the benefit of the consumers, saying there should be no monopoly for fair pricing.

Also, Mr Israel Aye maintained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission have enormous roles to play in preventing anti-competitive practices in the downstream sector.

NNPC spokesman Olufemi Soneye did not answer calls and messages seeking when the state-owned energy company will cut fuel prices.