Business
Competition: Private Depots Slash Petrol Price Below Dangote’s Rate
Price competition between Private fuel depots and Dangote petroluem refinery has intensified.
Checks show that most depots are now selling petrol at prices lower than Dangote Refinery.
Filling station owners and companies buying in large quantities now have to make a choice where to buy petrol from.
Private fuel depots across Nigeria are selling petrol at prices lower than the Dangote Petroleum Refinery.
Checks revealed that the average ex-depot price at major private depots has dropped to between N872 and N875 per litre, down from the previous average of N900.
The new rate at several depots is lower than Dangote refinery’s current price of N877 per litre.
The changes are seen at Aiteo, Pinnacle, Rainoil, Emadeb, Eterna, Ardova, Nipco, and Integrated Oil.
The ex-depot price reduction is expected to determine how much Nigerians pay for petrol in the coming days.
According to Petroleumprice.ng, private depots have become “noticeably busier” than Dangote’s plant, which has recorded slower activity since launching its N877 per litre pilot scheme earlier this month.
The pilot framework, a temporary supply arrangement jointly developed by Dangote Refinery and a coalition of 20 depot owners, began on October 10 and is set to end on Friday, October 31, 2025.
The initiative, covering about 600 million litres of petrol, followed a high-level meeting between Aliko Dangote and key downstream operators, including Salbas Energy, Optima Energy, Shafa, and Rano.
While the scheme was designed to stabilize prices, it has created new market competition.
Depot owners have responded to Dangote’s scheme and decided to slash their ex-depot prices to attract marketers.
A depot operator in Satellite Town, Lagos, said the renewed market activity has been encouraging.
“We are happy now, the place is much busier than before. Trucks are loading again, and retailers are coming back.”
Market analysts believe this resurgence reflects growing confidence in private depots as they resume active importation after weeks of slow operations.
They note that while Dangote remains a dominant player, private depots are using pricing flexibility and strong customer networks to stay relevant.
Experts, however, caution that sustaining these lower prices may be difficult.
President Bola Tinubu has approved a 15% import duty on petrol and Automotive Gas Oil (AGO), commonly known as diesel.
ThisDay reports that the new duty will be applied to the cost, insurance, and freight (CIF) value of imported fuels.
This means that imported petrol will now be more expensive, giving Dangote refinery an edge over depots in the race to win customers.
Earlier, Legit reported that Dangote Refinery has announced Optima Energy as its latest partner for the sale of petrol across the country.
The new marketer has now increased the number of partnerships available for Dangote Refinery petrol to four
Optima Energy joins MRS Nigeria, Ardova PLC, and Hyden as the other partners working directly with Dangote to sell affordable fuel.
Fresh petrol depot prices have emerged across Nigeria as marketers adjust to rising crude oil prices and renewed tensions in the Middle East.
The latest pricing changes come amid growing uncertainty in the global energy market following fresh military exchanges between the United States and Iran near the Strait of Hormuz, one of the world’s most important oil transit routes.
ndustry data tracked by PetroleumPriceNG and monitored by Legit.ng show that depot owners raised their Premium Motor Spirit (PMS) prices as a protective measure against potential losses linked to volatile international oil prices.
Global crude oil prices climbed during early trading on Wednesday, June 10, 2026, after the United States launched strikes on Iranian military infrastructure near the Strait of Hormuz.
As of 5:08 a.m. WAT, Brent crude rose by 1.03% to $92.39 per barrel, while the U.S. West Texas Intermediate (WTI) crude gained 0.91% to trade at $89.00 per barrel, according to a report by Oilprice.com
The market rally followed reports that American forces targeted Iranian air defence systems, radar installations and surveillance facilities after Washington accused Tehran of bringing down a U.S. Army Apache helicopter operating within the region.
The U.S. Central Command described the strikes as a defensive response. However, Iran denied responsibility for the helicopter incident and accused the United States of escalating tensions unnecessarily. The development has raised fears of a broader regional conflict that could disrupt global crude oil supplies.
Checks across fuel depots nationwide show that marketers have adjusted their petrol prices upward in response to the changing global market conditions.
According to the latest data: AIPEC now sells petrol at N1,247 per litre RainOil Lagos sells at N1,248 per litre Integrated depot price stands at N1,247 per litre Liquid Bulk has also fixed its price at N1,248 per litre Industry experts say the latest adjustments are largely precautionary as marketers attempt to shield themselves from potential losses should crude oil prices continue to rise.
The cost of importing petrol into Nigeria has dropped sharply following the recent decline in global crude oil prices, creating fresh competition for local refiners, including the $20 billion Dangote Refinery.
New data released by the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen to N1,117 per litre.
The figure is now significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, leaving a difference of N133 per litre.
The development comes days after the mega refinery reduced its ex-depot petrol price from N1,275 to N1,250 per litre in response to changing market conditions.
The latest MEMAN pricing template suggests that fuel importers may now enjoy a competitive edge over domestic refiners as international crude prices continue to soften. Aside from petrol, the landing costs of other petroleum products also recorded notable declines.
According to the data, diesel landing cost dropped to N1,470 per litre, compared to Dangote Refinery’s price of N1,700 per litre. Aviation Turbine Kerosene (ATK), commonly known as aviation fuel, also fell to N1,426 per litre, while Dangote’s price remains N1,650 per litre.
MEMAN estimated the exchange rate for fuel imports at N1,366.85 per dollar, reflecting the prevailing official foreign exchange rate at the time of the calculation.
Some filling stations along the Lagos-Ibadan Expressway and in other locations across Lagos and Ogun states have reduced petrol prices below N1,300 per litre.
This follows a price cut announced by the Dangote Petroleum Refinery on Sunday.
The refinery adjusted its ex-depot gantry price of petrol down to N1,250 per litre from N1,275 per litre, while also slashing the price of diesel to N1,700 per litre from N1,800 per litre.
According to Dangote officials, the price review reflects a recent decline in global oil prices and reinforces the company’s commitment to making refined products more affordable while providing cost relief to Nigerian consumers and businesses.
Following the announcement, observations across the Mowe/Ibafo axis of the Lagos-Ibadan Expressway in Ogun State showed that several independent marketers immediately adjusted their pumps. For instance, MRS filling stations reduced their petrol pump price to N1,286 per litre, NIPCO and Heyden retailed the product at N1,290 per litre, and SGR adjusted its price to N1,297 per litre.
Reductions were also recorded in the diesel market, with many filling stations dropping their prices to N1,800 per litre from the previous N1,900 per litre.
Despite these downward adjustments, many retail outlets still sell petrol above the N1,300 mark. Outlets operated by the Nigerian National Petroleum Company Limited (NNPC) in Ibafo adjusted their pumps to N1,305 per litre, while Mobil and Asharami sold the product at N1,310 and N1,320 per litre, respectively.
The overall price drop comes after a prolonged period of high fuel costs in Nigeria, which saw petrol skyrocket from N830 per litre to over N1,300 after global crude oil climbed past $115 per barrel due to tensions between the United States and Iran.
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