Petrol Price Shock: Dangote Undercuts Imports at N835

A Price War EruptsNigeria’s fuel market is on fire as the landing cost of imported petrol hits N870 per litre, while Dangote Petroleum Refinery slashes its price to N835, dealing a blow to importers. The Major Energies Marketers Association of Nigeria (MEMAN) dropped the bombshell on May 2, 2025, revealing that importing fuel now costs more than buying from Dangote’s mega-refinery. For Nigerians weary of soaring pump prices, this clash could mean cheaper fuel—but the battle is far from over.Dangote’s Game-ChangerMEMAN’s data shows imported petrol’s landing cost climbed steadily: N859 per litre on April 23, N872 on April 28, and N868 on April 29. Meanwhile, Dangote’s ex-depot price of N835 undercuts them all, forcing marketers to rethink their game. Stations like SGR in Sagamu and Mowe are already selling at N855, cheaper than MRS (N890) and Heyden (N885) in Ogun. Dangote’s price cuts, tied to the naira-for-crude deal with the Federal Government, are squeezing importers, who are struggling to sell at a profit. The Petroleum Products Retail Outlet Owners Association (PETROAN) cried foul, saying they’re forced to sell below cost to compete.A Rollercoaster of PricesBackground on Petrol Price Changes: Nigeria’s petrol prices have been a wild ride. In 2018, landing costs were N205 per litre, per Punch, but subsidies kept pump prices low. By 2022, costs hit N282 as oil prices surged. The 2023 subsidy removal sent prices soaring—NNPC sold at N600 while landing costs neared N720. In 2024, costs peaked at N1,120 in September, with pump prices hitting N1,200 in some areas. Dangote’s entry flipped the script: starting at N970 in November 2024, it slashed prices to N890 by February 2025, N825 by late February, and N835 by April, per Punch reports. The naira-for-crude deal, briefly paused in March 2025, fueled these cuts, though S&P Global noted Dangote’s reductions lag behind global price drops, keeping imports tempting.Dangote’s CommitmentDangote’s not just playing the price game—he’s promising accessibility. The refinery, with a 650,000-barrel-per-day capacity, assures “consistent supply” and “surplus for export,” per its February 27, 2025, statement. Group Chief Branding Officer Anthony Chiejina emphasized aligning prices with global crude trends to ease Nigerians’ burdens, especially during Ramadan. The refinery’s partners—MRS, Ardova, Heyden—distribute across Lagos, the South-West, and beyond, ensuring wide reach. Future plans include expanding retail networks and maintaining naira-based sales to stabilize costs, though no verified roadmap exists beyond current commitments. X posts from @Imranmuhdz on April 25, 2025, hint at more cuts if competition heats up, but nothing’s confirmed.The Catch for NigeriansThis price war is a double-edged sword. Cheaper Dangote fuel could lower transport and food costs, a lifeline for millions. But importers, bleeding billions—N75 billion monthly in February, per Punch—are fighting back, and some stations still charge N950. The Nigerian Midstream and Downstream Petroleum Regulatory Authority says imports cover half of Nigeria’s 50 million-litre daily demand, so any hiccup in Dangote’s supply could spike prices. For now, Nigerians are rooting for Dangote to keep the pressure on, but they’re watching every pump, hoping relief isn’t just a fleeting dream.