Dangote Refinery may cut petrol, diesel prices as depot price war intensifies

Dangote Refinery may review its petrol and diesel prices again as intensifying competition among Lagos depots pushes loading rates below the refinery’s current ex-depot prices.

Pricing data reviewed by Petroleumprice.ng showed widespread reductions across both Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel), as several depot operators adjust rates multiple times during the day in an effort to remain competitive.

The latest pricing trend comes despite Dangote refinery maintaining one of the most competitive diesel prices in the market. The refinery’s diesel loading price stood at N1,701 per litre, while its petrol price was adjusted to N1,253 per litre.

However, private depots have moved swiftly to narrow the gap.

According to a market survey, Aiteo, African Terminal, Integrated, Aipec and Ardova reviewed their petrol prices downward to N1,251 per litre, placing them below Dangote refinery’s ex-depot price of N1,253 per litre.

Other marketers, including Bono, Quest and Ascon, traded at N1,252 per litre, while Techno Oil sold petrol at N1,254 per litre.

The diesel segment witnessed a similar wave of price reviews.

While Dangote remained the lowest-priced major supplier at N1,701 per litre, several competing depots responded with rapid adjustments. Ibeto and Aipec reduced diesel prices to N1,703 per litre, Swift quoted N1,704 per litre, while African Terminal, Duport, Nipco and Menj reviewed prices to N1,705 per litre.

The development comes amid growing competition in Nigeria’s downstream petroleum sector, driven partly by increased product availability and the return of imported fuel supplies into the domestic market.

Recent import allocations have expanded sourcing options for marketers, increasing competition between imported products and locally refined supplies. The additional volumes entering the market have intensified the battle for customers, compelling suppliers and depot operators to closely monitor competitors’ pricing strategies.

Industry stakeholders say marketers are increasingly making purchasing decisions based on price, product availability and logistics efficiency. Consequently, even relatively small price differences are becoming important in securing product offtake.

While Dangote refinery remains among the most competitively priced suppliers in both the petrol and diesel segments, the narrowing gap between its prices and those offered by rival depots suggests that competition will continue to play a significant role in shaping pricing decisions across the downstream petroleum market in the coming weeks.