Petrol prices at Nigerian depots have dropped to their lowest levels in months as intense competition grips the downstream market, following the apparent collapse of the fuel supply agreement between the Dangote Petroleum Refinery and independent marketers.

Fresh findings show that depot owners have slashed ex-depot prices to as low as N710 per litre, a sharp reversal from the steep hikes recorded just weeks earlier.,

In the first week of January 2026, depot owners sharply increased gantry prices after reports emerged that the Dangote Refinery had shut down its petrol production unit for maintenance.

Although the refinery denied the reports, the speculation was enough to jolt the market.

Depot prices surged, and the increases quickly filtered through to filling stations nationwide.

Independent marketers raised gantry prices from around N720 per litre to over N800 per litre, with analysts noting that depot operators were exploiting uncertainty surrounding Africa’s largest refinery.

Depot owners reverse course as competition intensifies
The price spike, however, has proven short-lived.

Checks reveal that depot owners have now reversed course, cutting prices aggressively to stay competitive with Dangote Refinery’s pricing structure, especially as fresh fuel imports enter the Nigerian market.

Data from PetroleumPriceNG shows that several major depots reduced prices significantly in recent days.

As of Sunday, January 11, 2026, ShellPlux sold petrol at N710 per litre, MAO at N715, while A.Y.M.

Falling crude oil prices add more pressure
Energy experts say global oil market dynamics are also contributing to the decline in local petrol prices.

“Crude oil is currently trading between $50 and $60 per barrel in the international market,” energy policy analyst Adeola Yusuf told Legit.ng.

According to him, ongoing geopolitical tensions involving Venezuela and Iran have pushed crude prices lower, with direct implications for refined fuel costs.

“Crude oil is often used as a political tool and is highly sensitive to geopolitical developments. When prices drop, refined product prices usually follow, especially in domestic markets,” Yusuf explained.

Prices of liquefied petroleum gas (LPG), commonly known as cooking gas, are crashing in several parts of the country as retailers report improved supplies.

According to a market survey by PUNCH, retailers and consumers confirmed that prices have dropped and the product has become more available across the country.

This development follows months of scarcity, which led to a nationwide hike in prices. The scarcity peaked in September 2025.

Consumers in Lagos, Ogun, Oyo and other states confirmed that they purchased cooking gas within the N1,050 to N1,400 range. Some major marketers were also reported to be selling directly to consumers at around N900 per kilogramme.

For many households, the current prices represent a significant improvement from the sharp increases recorded last year, when LPG prices surged after a dispute involving the Dangote refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) led to the shutdown of some gas facilities.

Despite the improvement, several consumers said they were hopeful that prices would fall below N1,000 per kilogramme in the new year, arguing that lower costs are critical to promoting clean cooking and reducing reliance on firewood and kerosene.

Speaking on the situation, the National Chairman of the Liquefied Petroleum Gas Retailers branch of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Ayobami Olarinoye, said the LPG market had become relatively stable, with increased supply reaching Lagos.

According to Olarinoye, some off-takers are now receiving gas in Apapa, Lagos, helping to ease availability challenges experienced in previous months.

He explained that retail prices at street-level outlets currently range between N1,300 and N1,400 per kilogramme, noting that costs vary based on neighbourhoods, transportation and logistics.

Olarinoye added that prices could be lower at filling stations and gas plants, where operational and distribution costs are reduced.

He further disclosed that retailers currently purchase LPG from major marketers at prices between N960 and N1,050 per kilogram, depending on the supplier. According to the NUPENG official, sellers offering LPG below N1,000 per kilogramme are typically major dealers who own their own plants and sell directly to end users and do not distribute to retailers.

Amid its struggles to pay the over N4tn debt owed to power generation companies, the Federal Government incurred a total of N1.98tn in electricity subsidy obligations in 12 months, from October 2024 to September 2025.

This was according to the quarterly reports released by the Nigerian Electricity Regulatory Commission. In the fourth quarter of 2024, covering October to December, the electricity subsidy incurred by the government was N471.69bn. It was N536.4bn in the first quarter of 2025 and N514.35bn in the second quarter of last year.

The latest report from NERC released on Tuesday showed that the Federal Government incurred a power subsidy burden of N458.75bn in the third quarter of 2025 as electricity tariffs remained below cost-reflective levels, making a total of N1.98tn in the 12-month period, from October 2024 to September 2025.

NERC stated in its reports that in the absence of cost-reflective tariffs, the government undertook to cover the resultant gap between the cost-reflective and allowed tariff in the form of tariff subsidies.