HomeEconomyMarketers Abandon NNPCL As Dangote’s Cheaper Fuel Intensifies Price War

Marketers Abandon NNPCL As Dangote’s Cheaper Fuel Intensifies Price War

Several oil marketers are rebranding their filling stations, dropping the Nigerian National Petroleum Company Limited (NNPCL) franchise due to stiff competition in the downstream oil sector. Many independent marketers, especially in Lagos, are shifting alliances following a significant reduction in refined product prices by the $20 billion Dangote Petroleum Refinery.

Some dealers along the Lagos-Ibadan Expressway have already removed the NNPCL branding from their stations, opting for cheaper supply sources. The trend is fueled by Dangote’s decision to slash its petrol loading cost to N890 per litre, undercutting the landing cost of imported fuel.

Marketers now seek alternatives offering higher returns, abandoning affiliations with NNPCL, which previously held a monopoly over petroleum imports and distribution.

Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the shift, stating that marketers are moving towards suppliers with lower prices to maximize profit. He explained that some filling stations were originally franchised under NNPCL to secure products but are now opting for brands like MRS, which currently offers more competitive rates.

Oil and gas expert Olatide Jeremiah linked the trend to the removal of fuel subsidies and the emergence of Dangote Refinery, which disrupted previous pricing arrangements. He revealed that independent marketers had initially paid millions to secure NNPCL franchise licenses, enabling them to load at subsidized rates, but the strategy has become less viable with Dangote’s competitive pricing.

PETROAN Lagos Chairman, Akinola Ogunyolemi, clarified that most affected stations were privately owned, with franchise contracts that could be discontinued if a better offer emerged. The price war between Dangote, NNPCL, and private importers is expected to intensify as alternative fuel sources continue to emerge, reshaping the downstream oil market.

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