Petrol Price War: Dangote Vows to Enforce ₦739/Litre Cap, Accuses Regulator of Sabotage
The President and Chief Executive Officer of the Dangote Group, Aliko Dangote, has made a decisive move in Nigeria’s fuel market, declaring that the price of Premium Motor Spirit (petrol) must not exceed ₦739 per litre nationwide.
Speaking at the Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, Dangote gave assurance that the company would enforce this price cap, beginning with MRS Oil and Gas filling stations this week, while accusing officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of actively working to sabotage the price reduction efforts.
Table of Contents
Price Enforcement: The ₦739/Litre Cap
Dangote’s Gantry Price vs. Pump Price
The Price Crash Vow
The Sabotage Allegation: Targeting the NMDPRA
Alleged Price Collusion with Marketers
The “Reckless” Import Licence Claim
Justifying the Low Price
Breakdown of Final Cost
Defending Local Refining
Addressing Monopoly Concerns
The Plight of Modular Refineries
1. Price Enforcement: The ₦739/Litre Cap
Dangote announced a stringent enforcement plan to ensure that the recent reduction in his refinery’s gantry price translates into lower pump prices for Nigerian consumers.
Dangote’s Gantry Price vs. Pump Price
Refinery Gantry Price: Dangote is selling petrol to marketers at ₦699 per litre.
Pump Price Cap: Starting Tuesday, December 16, 2025, MRS Oil and Gas stations and other partners are expected to begin selling petrol at ₦739 per litre.
Immediate Goal: Dangote insisted that Nigerians should not pay more than ₦740 per litre for petrol throughout December and January.
The Price Crash Vow
The billionaire vowed to deploy all available resources to ensure that pump prices are brought down across the country. He challenged any distributor, including members of IPMAN, to buy a minimum of 10 trucks directly from the refinery at ₦699/litre.
2. The Sabotage Allegation: Targeting the NMDPRA
Dangote alleged that efforts to reduce fuel prices are being deliberately undermined by regulators and marketers. This follows his earlier public questioning of the NMDPRA CEO, Engr. Farouk Ahmed.
Alleged Price Collusion with Marketers
Dangote claimed that certain officials met with specific marketers and “were told to make sure that the price is maintained high,” effectively frustrating the market impact of the refinery’s price reduction.
The “Reckless” Import Licence Claim
Dangote heavily criticized the NMDPRA for issuing what he called “reckless licences” and contributing to systemic problems.
He alleged the NMDPRA is preparing to issue 47 import licences to bring in over 7.5 billion litres of petrol in the first quarter of 2026.
Dangote warned that this move is hurting local investments and has already resulted in the refinery’s tanks being full due to over-licensing.
3. Justifying the Low Price
Dangote questioned the justification for pump prices rising to as high as ₦900 per litre when his ex-refinery price is significantly lower.
Breakdown of Final Cost
He calculated that the cost of transporting petrol from the refinery (freight) is only ₦10 to ₦15 per litre, max.
| Cost Component | Price (₦/Litre) |
| Dangote Gantry Price | ₦699 |
| Freight (Transport) | ₦10 – ₦15 |
| Maximum Feasible Price (Before Margin) | ₦709 – ₦714 |
He concluded, “Why do you want to sell at ₦900? People should get the real price”.
4. Defending Local Refining
In response to suggestions of a price war with the NNPC and allegations of monopolistic intent, Dangote defended the refinery’s position.
Addressing Monopoly Claims: He challenged critics, noting that the NMDPRA had issued 47 import licences and stated, “did we stop anybody? Let those people come and put up a refinery here, or let them go and buy even NNPC’s and operate them”.
Plight of Modular Refineries: He lamented the struggle of smaller players, claiming that most modular refineries are struggling and are “almost on the verge of collapse,” with none currently profitable.
The current price skirmish between Dangote and the NNPC is viewed by some stakeholders as a healthy development for competition in the oil industry.
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