Many oil marketers are now removing the Nigerian National Petroleum Company Limited (NNPCL) logo from their filling stations. This move comes as they end franchise deals with NNPCL due to tough competition in fuel prices, mainly influenced by Dangote Petroleum Refinery’s recent price cuts.
Reports show that several filling stations in Lagos and along the Lagos-Ibadan expressway have stopped using the NNPCL brand. Independent marketers are rebranding their stations to attract more customers with cheaper fuel prices, as Dangote’s $20 billion refinery in Lekki offers lower rates.
The price war began when Dangote slashed its petrol loading cost from N950 to N890 per litre. This reduction made Dangote’s fuel cheaper than imported petrol, pushing marketers to switch suppliers.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, confirmed this change, saying, “Some marketers are changing and rebranding. Remember that there was a time NNPCL was the sole distributor and importer of petrol. So, marketers then gave their filling stations as franchises so that they could get products.”
Previously, marketers partnered with NNPCL to secure fuel supplies. But now, with Dangote offering competitive prices, marketers prefer buying directly from Dangote or other private importers.
Akinola Ogunyolemi, Chairman of PETROAN in Lagos, explained, “These are individual outlets. What they do is that, if an NNPCL contract expires and they are not ready to move forward with them or if they get a juicy offer, they will remove the NNPCL logo. They will rebrand again and put other people’s names. That could be the reason.”
Deregulation in the oil sector has led to intense competition. Olatide Jeremiah, an oil expert, noted that Dangote’s refinery disrupted NNPCL’s control over petrol pricing. He stated that after the subsidy removal, NNPCL controlled prices. But Dangote’s entry changed the game.
Dangote Refinery stated that the price cut responds to global energy trends and falling crude oil prices. Brent crude dropped from $81 to $76.76 per barrel in January 2025, influencing Dangote’s decision.
Experts predict more filling stations will leave NNPCL as Dangote’s cheaper fuel reshapes Nigeria’s oil market. This competition may lead to more price reductions, benefiting Nigerian consumers in the long run.
