The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed that Dangote Refinery's recent reduction in premium motor spirit (PMS) prices is a strategic move to dominate Nigeria's petroleum downstream sector.
IPMAN spokesperson, Chinedu Ukadike, disclosed this on Thursday during an exclusive interview following Dangote Refinery's announcement of a fresh N15 reduction in retail fuel prices nationwide.
According to the new price template, Dangote's retail partners including MRS, Ardova PLC, Optima, and others will now sell petrol between N875 and N905 per litre, down from the N890 to N920 range announced in April 2025.
"Dangote wants to use fuel price drops to tell Nigerians who his master is in the business downstream. The downstream petroleum market is very competitive. He has decided to use the price war to ensure he holds firm on the buying and distribution of petroleum products in Nigeria," Ukadike stated.
The IPMAN spokesperson highlighted that the price reduction has created a challenging situation for independent marketers who had already purchased stock at higher prices. These marketers now face potential losses of between N20 and N25 per litre if they adjust to the new pricing structure.
"For us, the independent marketers, it is a lose-win situation. The loss is that those who have already gotten petrol products from Dangote Refinery or its partnership will have to lose a N20 to N25 margin per litre and revert to the new price," he explained.
Ukadike added that market dynamics would eventually allow marketers to sell their existing stock to balance trade, but warned that fuel importers should prepare for increased competition as the "price war has started."
Since April 2025, the 650,000 barrels per day Dangote Refinery has announced at least two fuel price reductions following the Federal Government's renewed commitment to the Naira-for-crude deal, which allows the refinery to purchase crude oil in local currency.
Industry analysts suggest this latest price reduction could further consolidate Dangote Refinery's position in Nigeria's petroleum market while potentially forcing other players to reconsider their pricing strategies or risk losing market share.
