By Abigail Philip David
Some oil marketers are rebranding their filling stations by removing the Nigerian National Petroleum Company Limited (NNPCL) logo, as they move away from franchise agreements with the national oil firm amid fierce competition in the downstream sector. The shift comes in response to a recent price war, triggered by the $20 billion Lekki-based Dangote Petroleum Refinery slashing its loading costs from N950 to N890 per litre.
Marketers in Lagos—particularly those along the busy Lagos-Ibadan expressway at locations such as Wawa and Ibafo—are among the first to drop the NNPCL branding. By rebranding, independent dealers aim to secure refined products at lower rates. With the deregulation of the downstream oil market intensifying competition, many are opting for alternative supply sources that offer a more competitive price, such as the Dangote refinery and other import channels.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, explained that the change reflects a broader market trend. “There was a time when NNPCL was the sole importer and distributor of petrol, and many marketers relied on its franchise licence to obtain fuel at a cheaper rate,” he said. “But now that the market dynamics have changed—with the Dangote refinery offering more attractive prices—marketers are rebranding to secure better margins and improve their return on investment.”
Oil and gas expert Olatide Jeremiah confirmed that the franchise model, once a lucrative avenue for obtaining discounted petroleum products from NNPCL, has been disrupted by the emergence of Dangote’s facility. He noted that following the removal of fuel subsidies and subsequent price hikes, NNPCL had attempted to manage the market by setting fixed prices. However, with the Dangote refinery now offering cheaper loading costs, independent marketers have been forced to re-evaluate their options to remain competitive.
The rebranding trend also signals potential changes in licensing practices. Experts believe more marketers may relinquish their NNPCL licenses as the price disparity between imported petrol and products from the Dangote refinery widens. Recent data from the Major Energies Marketers Association indicate that the on-spot landing cost of Premium Motor Spirit (PMS) has reached approximately N910 per litre, with the 30-day average nearing N939 per litre.
A spokesperson from the Dangote Petroleum Refinery, via a statement signed by Group Chief Branding and Communications Officer Anthony Chiejina, attributed the price reduction to a favorable global energy market and a drop in international crude oil prices. “This strategic adjustment reflects the ongoing fluctuations in the global crude oil markets,” the statement read, underscoring the refinery’s competitive pricing approach.
Meanwhile, industry observers suggest that the rebranding of filling stations is a tactical response to the changing market conditions, as marketers seek to secure fuel supplies at the most economical rates. With the current pricing war heating up, further shifts in franchise agreements and licensing in the downstream sector may be on the horizon.
