Petrol retailers across major Nigerian cities have started selling fuel below the N739 per litre benchmark set by Dangote Petroleum, signaling a fresh price war in the downstream sector of the oil industry.

Industry observers say the aggressive pricing is aimed at attracting more customers and increasing market share amid an increasingly competitive landscape.

Motorists in Lagos, Abuja, Port Harcourt, and other commercial hubs have reportedly been able to purchase petrol for as low as N725 per litre at selected filling stations.

Speaking to the source, a fuel marketer who requested anonymity, said: “We have to adjust our prices to stay competitive. Dangote’s price is high for many consumers, and if we don’t offer a lower rate, we risk losing business to rivals.”

The price adjustment comes amid rising concerns over fuel scarcity in some regions, with traders saying that lowering prices could help stimulate demand and reduce hoarding by middlemen. Market analysts, however, warn that sustained undercutting could affect profitability for smaller retailers and may lead to operational challenges.

In response to the price drop, Dangote Petroleum has yet to release an official statement, though sources within the company indicate that a review of distribution and pricing strategies may be underway. Industry experts note that such price competition could ultimately benefit consumers but might also trigger volatility in the sector.

Economists argue that the current pricing battle reflects a broader trend in Nigeria’s oil market, where private players are increasingly asserting influence over retail prices, challenging traditional benchmarks and government-regulated rates.

Meanwhile, motorists have welcomed the relief, with some describing the price reduction as “a much-needed break for everyday Nigerians”. Lagos-based driver, Ibrahim Musa, said: “Petrol prices have been high for months. Even a small reduction like this makes a difference for my daily commute.”

The Petroleum Products Retailers Association of Nigeria (PPRAN) has called for moderation, urging retailers to maintain sustainable pricing to avoid market disruptions while continuing to ensure fuel availability nationwide.

As the price war unfolds, stakeholders in the petroleum sector are watching closely to see if Dangote Petroleum will respond with new pricing strategies or maintain the current benchmark.

The situation underscores the dynamic nature of Nigeria’s downstream oil market and the growing influence of competition in shaping consumer costs.