Oil marketers dump NNPCL for Dangote Petrol amid price war

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Oil marketers dump NNPCL for Dangote Petrol amid price war

Reports have it that some oil marketers are starting to remove the Nigerian National Petroleum Company Limited (NNPCL) logo from their filling stations as they end their franchise agreements with the national oil company.

This move is driven by intense competition in the downstream oil sector, especially following a significant drop in refined product prices due to the $20bn Dangote Petroleum Refinery based in Lekki.

Several dealers who once displayed the NNPCL logo at stations along the Lagos-Ibadan expressway, including locations in Wawa and Ibafo, have already removed the name of the national oil firm. Many others, particularly in Lagos, are considering a similar shift.

Independent marketers are looking to secure better product supply at lower prices as the deregulation of the sector intensifies competition. Many former NNPCL-affiliated stations are now being rebranded under private oil marketers’ ownership, especially in Lagos and nearby areas.

It was also revealed that some marketers may choose to give up their NNPCL licenses, attracted by the lower loading costs for Premium Motor Spirit (PMS) refined by the Dangote refinery. The Dangote refinery’s costs have become more competitive, currently lower than the cost of imported petrol.

A petrol price war has been reignited in the industry, particularly after Dangote Petroleum Refinery reduced its loading costs from ₦950 to ₦890 per litre. According to dealers, the rebranding of filling stations is a strategy to take advantage of cheaper products from the Dangote refinery and other import sources.

This shift was confirmed by Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, during an exclusive interview on Tuesday.

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