Marketers Team Up as Dangote, NNPC Slash Fuel Prices

Independent fuel marketers in Nigeria are forming strategic alliances to cushion the impact of falling petrol prices, as competition from Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC) intensifies.

The marketers, many of whom are struggling to keep up with the rapid price fluctuations, are now pooling resources to purchase smaller truckloads of fuel. This approach allows them to offload products more quickly, avoiding heavy losses triggered by frequent price cuts from larger suppliers.

Industry sources say the decision to collaborate is a survival strategy amid increasing market pressure. “With the constant change in pricing, no one wants to be left with old stock bought at a higher rate,” one marketer told Legit.ng. “By partnering, we share both risk and cost.”

The current market disruption stems largely from Dangote Refinery’s entry into the retail distribution space. The refinery has signed bulk supply deals with key downstream players including Ardova Petroleum, MRS Oil, Heyden Petroleum, Optima Energy, Techno Oil, and Hyde Energy—giving it extensive reach and competitive pricing power.

The NNPC has also responded by adjusting its pump prices, further fueling the price war that has placed smaller operators under significant strain.

Amid these developments, independent marketers are calling on the federal government to expedite the rehabilitation and full operation of Nigeria’s state-owned refineries. They argue that a functional and competitive refining sector is essential to preventing monopolies and ensuring price stability.

“There must be a level playing field,” said another industry operator. “If only a few have control over refining and distribution, then independent marketers—and by extension, consumers—will bear the brunt of market instability.”

With rising operational costs, uncertain margins, and fierce competition from heavily capitalized players, industry analysts say the coming months will test the resilience and adaptability of Nigeria’s independent fuel marketers.

Follow The Ameh News for more updates on Nigeria’s energy and capital markets.