Petrol Price War Forces Closure of Nearly 5,000 Fuel Stations
Over 4,900 petrol stations in Nigeria have shut down as independent marketers scale down operations due to heavy losses caused by volatile petrol prices. The closures are linked to inconsistent pricing by the Dangote Refinery and PMS importers, with pump prices fluctuating from N950 to N835 between January and April 2025.
The deregulation of the downstream oil sector in October 2024, following subsidy removal, sparked a fierce price war between the Dangote Refinery and fuel importers. The resulting instability, along with rising logistics costs and lack of financing, has forced many marketers to reduce purchases or pool resources to buy fuel collectively.
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), over 70% of its 7,000 members have shut down, citing unpredictable pricing and lack of bank loans. PETROAN President Billy Gillis-Harry said retailers are forced to seek suppliers offering more flexible terms just to survive.
The crisis extends to tank farm operators, with about 70 of 120 facilities now abandoned. The Independent Petroleum Marketers Association of Nigeria (IPMAN) also reported massive losses among its over 20,000 members due to frequent price changes and poor logistics, with transport delays causing losses of up to N1 million per truck.
Despite the challenges, marketers are combining funds and scaling operations to stay afloat, but warn of worsening scarcity and higher prices if no regulatory or financial support is provided.
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