Oil Marketers Abandon NNPCL Franchise, Rebrand Stations As Fuel Price War Escalates

In the midst of fierce competition in the downstream oil sector, numerous oil marketers are removing the Nigerian National Petroleum Company Limited (NNPCL) logo from their filling stations and terminating their franchise agreements with the national oil corporation.....KINDLY READ THE FULL STORY HERE▶

This shift follows the recent drop in refined product prices, sparked by the $20 billion Dangote Petroleum Refinery, which has lowered Premium Motor Spirit (PMS) loading costs, making it more appealing for independent marketers.

Reports from Punch have revealed that some NNPCL-branded stations along the Lagos-Ibadan Expressway, such as Wawa and Ibafo, have already rebranded under private ownership, severing their ties with NNPCL.

More filling stations, especially in Lagos and neighboring states, are expected to follow suit as marketers seek more cost-effective fuel supplies from Dangote Refinery and other private importers.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained in an interview with Punch that this departure from NNPCL’s franchise model is driven by changing economic realities and the evolving market dynamics.

The price reduction by Dangote Petroleum Refinery, which slashed its loading cost from ₦950 to ₦890 per litre, has intensified competition, pushing marketers to abandon NNPCL’s supply chain.

Ukadike further explained that independent marketers now have more freedom to source fuel at cheaper rates without being locked into NNPCL’s pricing structure.

He added, “Yes, that’s true. Some marketers are indeed changing and rebranding. There was a time when NNPCL was the sole importer and distributor of petrol, so marketers had to join the franchise to get products. But now the situation has changed. Some are even shifting to MRS filling stations because MRS now offers cheaper prices than others.”

“People want profitability. If you’re carrying the Total brand, but Total isn’t supplying products, what’s the point? You need to make the switch to a more viable option. The truth is, most of these stations are not owned by NNPCL—they just operated under their franchise model.”