Independent Petroleum Marketers Abandon NNPCL Franchise Amid Pricing War

Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have started switching from the Nigerian National Petroleum Company Limited (NNPCL) franchise in search of better deals.

This shift comes amid a pricing war between Dangote Refinery and the state-owned oil company. IPMAN spokesperson, Chinedu Ukadike, confirmed this development on Tuesday.

Notably, the NNPCL branding has been removed from several filling stations in Lagos, particularly near Wawa on the Lagos-Ibadan Expressway and in Ibafo, along the main road.

Dangote Refinery recently slashed its ex-depot premium motor spirit (PMS) price from ₦950 per litre to ₦850 in a strategic move. This triggered a competitive price war in the downstream oil sector. As a result, petroleum marketers are reportedly canceling their NNPCL licences in favor of the cheaper alternatives offered by Dangote Refinery.

Providing context on the situation, Ukadike explained that marketers are rebranding their businesses as NNPCL is no longer the sole fuel importer. Naturally, marketers are opting for partnerships that maximize their returns on investment.

"Some marketers are changing and rebranding. Remember that there was a time when NNPCL was the sole distributor and importer of petrol. So, marketers then gave their filling stations as franchises to secure product supply.

"But now that the game has changed, some marketers are switching to MRS filling stations because MRS is currently selling cheaper than others," he stated.

As of the time this article was filed, NNPCL spokesperson Olufemi Soneye had not responded to inquiries regarding the situation.

The emergence of Dangote Refinery, along with the revival of operations at the Port Harcourt and Warri refineries, has significantly impacted Nigeria's oil industry.