Higher Pump Prices: Nigerians Favor NNPCL Over Dangote Fuel

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Recent developments in Nigeria’s fuel market suggest that many motorists are becoming increasingly sensitive to pump price differences, with several consumers reportedly favoring outlets linked to the Nigerian National Petroleum Company Limited over those distributing products from the Dangote Refinery.

Observations from petrol stations in Abuja indicate that some retail outlets connected to the Dangote supply chain have experienced reduced customer turnout in recent weeks. The trend appears linked to the slightly higher pump prices charged at certain stations compared to nearby competitors.

Among the outlets affected are branches operated by MRS Oil Nigeria Plc, which distributes petrol sourced from the Dangote Refinery. MRS is owned by businessman Sayyu Idris Dantata, a relative of refinery chairman Aliko Dangote.

Field observations around Kubwa Expressway and Lugbe revealed that petrol at MRS stations was being sold for about ₦945 per litre. This figure placed the stations roughly ₦25 above the ₦920 pump price offered by nearby outlets operated by the NNPCL and AA Rano.

Customer Traffic Drops at Some Retail Stations

The difference in pricing appears to have influenced customer behavior. A manager at one of the MRS outlets explained that the higher pump price has discouraged motorists from buying fuel there, resulting in noticeably shorter queues at the station.

According to the station official, management had earlier communicated plans to reduce the pump price to match competing stations. However, the directive had not yet been implemented at the time of the report, leaving the outlet at a disadvantage in terms of customer patronage.

Despite the lower retail demand at some stations, the refinery’s ex-depot price remains competitive when compared with other suppliers in the downstream sector.

Ex-Depot Prices Remain Competitive

As of December 8, 2025, the Dangote Refinery’s ex-depot petrol price stood at approximately ₦826 per litre. This pricing places it in close competition with other major suppliers such as Aiteo Group and MENJ, which offer similar wholesale rates.

Industry experts note that ex-depot pricing is only one part of the cost structure. Transportation, retail margins, and operational costs can all influence the final price motorists pay at filling stations.

Concerns About Price Volatility

Commenting on the situation, Billy Gillis-Harry, who heads the Petroleum Products Retail Outlets Owners Association of Nigeria, warned that inconsistent pricing in the fuel market could create instability.

He urged consumers to consider long-term supply reliability when evaluating petrol prices rather than focusing solely on short-term savings.

According to him, sudden price differences could have broader implications for the downstream sector if market conditions remain unstable over time.

Recent Price Adjustments Across Abuja

In response to market pressure and competition among fuel marketers, several petrol stations—including those operated by the NNPCL—have adjusted their pump prices in recent weeks. These revisions have brought retail prices in Abuja within a range of roughly ₦920 to ₦945 per litre.

Commentary and Analysis

The current pricing competition highlights the evolving dynamics of Nigeria’s downstream petroleum market following the gradual liberalization of fuel pricing. As private refineries such as Dangote enter the supply chain, competition between suppliers is expected to intensify.

Consumer behavior in Abuja illustrates how even small price differences can influence purchasing decisions. For many motorists, a ₦20–₦30 variation per litre can significantly affect daily transportation costs.

However, analysts note that long-term market stability will depend not only on pricing but also on consistent supply, efficient distribution networks, and regulatory oversight. If managed effectively, increased competition among suppliers could eventually benefit consumers by encouraging more efficient pricing and service delivery across Nigeria’s fuel retail sector.