The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that its members are increasingly moving away from the Nigerian National Petroleum Company Limited (NNPCL) due to cheaper pricing offered by Dangote Refinery. This shift comes amid a growing price competition between the state-owned oil firm and the privately-owned Dangote Refinery.
IPMAN’s spokesperson, Chinedu Ukadike, confirmed the development on Tuesday. He noted that some filling stations, particularly in Lagos, have already stopped displaying the NNPCL brand. For instance, stations along the Lagos-Ibadan Expressway, including areas like Wawa and Ibafo, have rebranded to reflect new partnerships.
The move follows Dangote Refinery’s recent decision to reduce the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N850 per litre. This price cut has intensified competition in the downstream oil sector, prompting marketers to seek more cost-effective deals.
Ukadike explained that many marketers are rebranding their stations and relinquishing their NNPCL licenses because the state-owned company is no longer the sole importer of fuel. With Dangote Refinery and other players entering the market, marketers are opting for partnerships that offer better returns on investment.
“Some marketers are rebranding their stations. There was a time when NNPCL was the sole distributor and importer of petrol, so marketers aligned with them to secure products. Now that the market dynamics have changed, you’ll see stations switching to brands like MRS, which is selling fuel at lower prices,” Ukadike said.
Meanwhile, NNPCL’s spokesperson, Olufemi Soneye, has not yet responded to inquiries regarding the development.
The entry of Dangote Refinery and the resumption of operations at the Port Harcourt and Warri refineries have significantly impacted Nigeria’s oil sector, creating new dynamics in fuel pricing and distribution.
