IPMAN warns marketers against refusal to sell PMS at N739 amid rising competition, bank charges

*The Independent Petroleum Marketers Association of Nigeria warns members against refusal to reduce the price Premium Motor Spirit to N739 per litre also, or they should be ready to lose energy consumers amid accumulating bank interest charges

Isola Moses | ConsumerConnect

Amid the price-induced competition in the downstream petroleum sector of the economy the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged its members to sell Premium Motor Spirit (PMS) amid the increasing bank interest charges.

ConsumerConnect reports Chinedu Ukadike, Spokesperson of IPMAN, warned that fuel marketers who refused to reduce prices to N739 per litre would lose customers as bank interest charges accumulate.

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Ukadike stated: “We are in a situation where competition can be determined by price. “Patronage will be determined by pricing.

“Nobody is against you; nobody is regulating you. “You will regulate yourself. The market will regulate itself.”

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The Spokesperson of the Association said: “The time has gone when people were queuing at NNPC filling stations.

“Wherever the fuel is cheap, that is where the marketers go.

“So, we are in a price war. Demand and supply determine the price.”

In view the development, checks revealed that price-induced competition has continued to deepen as some retail outlets have dropped the prices of petrol below the N739 per litre recommended by the Dangote Petroleum Refinery, Lagos.

Despite Dangote Refinery’s recommended PMS price, the tide is gradually turning, as some filling stations now sell petrol at prices lower than those of MRS Oil, Dangote’s key retail partner.

Ukadike, IPMAN Spokesperson further noted that once Dangote reduced the gantry price to N699, marketers would move towards competitive pricing to retain customers also.

According to him, if oil marketers fail to follow suit, “interest from banks would be ‘eating’ your capital.”

Earlier, reports indicated that since the Dangote Refinery slashed petrol pump prices from about N900 to N739 December 2025, several oil importers and depot owners have lamented mounting losses besides rising bank interest charges in the industry.

But, in a move to remain competitive, several oil market m operators were forced to sell petrol at rates below their costs.

A market survey over the last weekend showed observed that some filling stations now sell PMS cheaper than MRS Oil, the main partner of the Dangote Refinery to champion the price reduction to N739 per litre.

Further investigations in some parts of Lagos State indicated that as of Sunday, January 11, NIPCO sold PMS at N738 per litre, SAO filling stations sold it at N735, while Akiavic offered the product at N737.

Further still, an AP filling station beside an MRS outlet in Mowe, Ogun State, dropped its price to N736 per litre, according to report.

Filling stations located in the same areas now closely monitor rivals’ pump prices to avoid being undercut in the highly competitive market, report noted.

Industry stakeholders said the reality is that Nigerian motorists now troop to any filling stations offering the lowest prices, leaving outlets selling at higher rates struggling for customers.

The Major Energies Marketers Association of Nigeria reportedly said the landing cost of petrol averaged N762.38 per litre, while Dangote’s ex-gantry price remained N699.

Despite the difference, some importers still adjusted prices to compete with the Dangote-backed MRS, report stated.

Hitherto, report had indicated that both Dangote Refinery and oil importers were counting losses running into billions of Naira.

However, industry operators said the decision to lower pump prices had nothing to do with whether imported petrol was cheaper or not.

According to them, players across the market were simply striving not to be left behind in the ongoing price-induced competition.

An operator, told The Punch in confidence, due to the stiff competition in the downstream industry: “This is not a function of whether imports are better or not, but simply a market strategy to get a good share of the market.

“However, it needs to be stressed that we are not at war with any marketer or depot operator nor any refinery.”

It is recalled the Dangote Refinery, December 12, surprised depot owners and marketers when it slashed the gantry price of petrol by N129, from N828 to N699 per litre.

Alhaji Aliko Dangote, President/Chief Executive of Dangote Group, said he had information that some marketers planned to keep pump prices high despite the reduction. Consequently, Dangote vowed to enforce the new pricing regime, with MRS selling petrol at N739 per litre.

The foremost industrialist and philanthropist stated: “We are going to use whatever resources we have to make sure that we crash the price down.

“For December and January, we don’t want people to sell petrol for more than N740 nationwide.”

Dangote said: “Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure that these prices are down.

“If you have money to come and buy, you can pick up petrol at N699,” Dangote said.

Likewise, as more MRS filling stations, particularly in Lagos and Ogun states, began to dispense Dangote Refinery petrol at N739 per litre, motorists started boycotting outlets selling at higher prices weeks ago.

This led to fuel queues at MRS filling stations in Lagos and other locations, report said.

Nonetheless, the tide is gradually turning as some filling stations now sell petrol at prices lower than those of MRS Oil, a major partner of Dangote Petroleum Refinery, according to IPMAN.

Reports noted as several filling stations sell petrol below N800 per litre as the price competition lingers.

Meanwhile, in a statement over the weekend, the Dangote refinery disclosed that supply under the marketers’ arrangement began October 2025 with an agreed offtake volume of 600 million litres of PMS.

It said this was later increased to 900 million litres November and further expanded to 1.5 billion litres December at year.

Highlighting the rationale for the move, Mr. Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote Group, stated:

“In line with market growth and absorption capacity, volumes were scaled up accordingly.

“Subsequently, and in line with downstream market liberalisation, we opened PMS supply to all qualified marketers, bulk consumers, and filling station operators.”

The Refinery added that since December 16, 2025, the Refinery has consistently loaded between 31 million and 48 million litres of PMS daily from its gantry, subject to consumer market demand in the Nigerian economy.

Chiejina said these figures, the refinery noted, are verifiable against depot and loading records maintained under routine regulatory oversight of the NUPRC and NMDPRA.

The Dangote Refinery equally reaffirmed its commitment to reliable supply, transparency and the orderly development of a competitive downstream petroleum market.

The company pledged its continued collaboration with the regulators and industry stakeholders to support domestic refining, conserve foreign exchange, moderate prices, and strengthen long-term energy security in the country.

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