Some independent marketers aligned with Dangote Refinery may soon sell Premium Motor Spirit below the prevailing N739 per litre benchmark, as the refinery moves closer to full direct supply to its partner outlets.
Industry sources said the development follows the commencement of virtual training for staff of affiliated retail outlets, which began on Tuesday. The training is expected to be followed by the rollout of free direct delivery of petrol from the refinery to partner filling stations, a move that could significantly lower distribution costs.
Companies participating in the partnership include MRS, Ardova Petroleum, Garima, Heyden and Optimal. While MRS has already been selling Dangote-refined petrol at the agreed rate, other partners have been unable to do so because they were yet to receive products through the refinery’s direct delivery arrangement.
The National President of the Independent Petroleum Marketers Association of Nigeria explained that the pricing flexibility comes from the gap between the refinery’s gantry price and the current pump price. He noted that with a gantry rate of about N699 per litre, independent marketers still have enough margin to compete aggressively on price once logistics costs are reduced.
He said that marketers benefiting from free delivery could pass some of the savings to consumers, especially in highly competitive locations, making it realistic for pump prices to fall below N739 per litre in some outlets.
A market survey in Abuja showed wide price variations across stations. While MRS outlets sold petrol at N739 per litre with noticeable queues, other marketers maintained significantly higher prices. Some major stations sold between N840 and N920 per litre, while several independent outlets priced as high as N930 per litre, though with easier access and little or no waiting time.
The expected expansion of Dangote Refinery’s direct delivery network is likely to intensify competition in the downstream sector, putting pressure on prices and reshaping market dynamics, particularly for independent marketers and small retail operators operating on thinner margins.
