- IPMAN confirms that members are leaving the NNPCL franchise for cheaper deals with Dangote Refinery.
- Dangote Refinery’s price cut to N850 per litre sparks a price war, prompting marketers to rebrand and switch affiliations.
- NNPCL faces challenges as Dangote and other refineries reshape Nigeria’s oil sector with competitive pricing.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that some members are leaving the Nigerian National Petroleum Company Limited (NNPCL) franchise. This move comes amid a price war between the state-owned oil firm and Dangote Refinery.
IPMAN spokesperson Chinedu Ukadike confirmed the shift on Tuesday, February 4. He revealed that several filling stations, particularly in Lagos, have dropped the NNPCL name. Stations along the Lagos-Ibadan Expressway in Wawa and Ibafo have also rebranded.
This change follows Dangote Refinery’s decision to reduce its ex-depot price for Premium Motor Spirit (PMS) from N950 to N850 per litre. The price cut sparked a fresh price war in the downstream sector.
As a result, petroleum marketers are abandoning their licenses with NNPCL and opting for cheaper products from Dangote Refinery. Ukadike explained that marketers are moving to more profitable partnerships and noted that NNPCL no longer controls fuel imports.
“Marketers naturally gravitate toward partnerships that offer better returns on investment,” Ukadike said. He added that when NNPCL was the only importer, marketers had to franchise their stations to access fuel.
“Now, the game has changed. Some marketers even switch to MRS stations because they sell at lower prices,” Ukadike said. He emphasised that competition benefits consumers with lower prices at the pump.
Meanwhile, NNPCL has not yet responded to inquiries regarding the issue. Spokesperson Olufemi Soneye has not commented on the situation.
Dangote Refinery’s launch and the reopening of the Port Harcourt and Warri refineries impact Nigeria’s oil sector. These changes reshape the market and challenge NNPCL’s dominance.
In recent years, NNPCL controlled the majority of fuel imports, making it the primary supplier for most filling stations. Marketers relied on the company for access to fuel. However, with Dangote Refinery entering the market, the dynamics have shifted.
Dangote Refinery’s lower prices attract marketers, who now opt for deals with higher profit margins. As Dangote continues to produce cheaper fuel, its market share expands.
The shift is visible in several filling stations, where marketers replace NNPCL branding. Some stations proudly display MRS, a brand that benefits from Dangote Refinery’s price cuts. Others rebrand to take advantage of more favourable business conditions.
The price war affects both marketers and consumers. Lower fuel prices have relieved Nigerians’ aches at the pump. However, it remains to be seen how NNPCL will respond to this challenge and whether it can regain its market share.
In conclusion, IPMAN’s confirmation of the shift away from NNPCL highlights the changing landscape of Nigeria’s oil sector. With Dangote Refinery offering more competitive prices, marketers reassess their business partnerships. The ongoing price war reshapes the market, benefiting consumers and putting pressure on NNPCL to adapt.