Nearly three weeks after Dangote Refinery rolled out its logistics-free petrol distribution scheme, motorists across Nigeria have yet to see the promised drop in fuel pump prices.
Despite receiving supplies at N820 per litre with free delivery, most major marketers — including AP, Heyden, Ardova, and others — continue to sell petrol at between N865 and N870 per litre.
A PUNCH investigation on Sunday showed that only a handful of MRS stations in Lagos reduced prices to N841, leading to long queues at outlets like the Alapere station. However, other MRS outlets, such as the one in Olowotedo along the Mowe–Ibafo axis, sold petrol at N875 per litre.
Heyden maintained N863, while Ardova and several others sold at N865–N870.
Dangote’s Scheme and Market Reaction
In September, Dangote Refinery announced the rollout of 1,000 compressed natural gas (CNG)-powered trucks to deliver petrol nationwide without logistics costs, cutting the ex-depot price to N820 per litre.
Under the pricing framework, Lagos and South-West states were expected to sell at N841 per litre, while Abuja, Rivers, Edo, Delta, and Kwara were projected at N851.
The initiative was meant to provide immediate relief to motorists, but nearly a month later, pump prices have remained unchanged in most filling stations.
Marketers blamed old stock purchased at higher costs, claiming new prices would reflect once tanks were replenished. But a Dangote Refinery source dismissed the excuse, saying many marketers had already received the new supply.
“It’s unfair to keep selling at old rates. They’re getting petrol at N820 with free logistics yet still selling above N841 or N851, depending on location. Nigerians are watching,” the source told PUNCH.
Controversy Over Pricing Power
The refinery clarified that it cannot legally enforce pump prices. “We can’t compel them; the law doesn’t allow us to fix pump prices, and NMDPRA agrees,” the source added.
Meanwhile, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticised Dangote’s frequent price cuts, arguing they disrupt market stability by creating shocks that affect competitors with active import cargoes.
DAPPMAN Executive Secretary, Olufemi Adewole, said portraying price reductions as patriotic “overlooks their disruptive timing and the financial strain imposed on other market participants.”
Market Trendsetter
Since it began petrol production, the Dangote Refinery has overtaken the Nigerian National Petroleum Company Limited (NNPC) as the market’s price trendsetter.
NNPC spokesperson Andy Odeh confirmed no price changes, saying: “Our current pump price in Lagos remains N865.”
Despite earlier pledges by independent marketers to review prices once Dangote supplies arrived, most stations have yet to adjust, leaving Nigerians frustrated over unfulfilled expectations.
