Depot Owners, Dangote Refinery Reduces Petrol Prices

• Dangote petroluem refinery and also private depot owners have reduced the cost of petrol products
• The price change comes in the wake of Dangote refinery's decision to slash its retail prices for its partners
• The price changes further intensify the price competition among Depot owners and Dangote refinery

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

Depot owners in Lagos have reduced the price of Premium Motor Spirit (PMS), commonly known as petrol.

The price changes give little hope for lower petrol prices at filling stations.

As of Monday, May 26, 2025, the average price of petrol declined marginally at several terminals, petroleumprice.ng reports.

The Dangote Petroluem Refinery also reduced its petrol price on Monday.

Here is a snapshot of prices on Monday

According to the latest price updates, Dangote Refinery reduced its pump price from N828 to N827 per litre, for marketers while Eternal Oil adjusted its rate from N832 to N830.

NIPCO also cut its price from N838 to N837, and both AA Rano and Menj reviewed their prices downward from N831 to N830 per litre.

There were also changes for the Automotive Gas Oil (AGO) segment, also known as diesel, with varied price changes across terminals.

Chipet reduced diesel price from N917 to N916, Menj from N917 to N915, while Ibeto increased slightly from N917 to N918.

Dangote maintained its price at N925, Integrated rose from N917 to N919, and Nipco saw a significant drop from N940 to N915.

Here are retail prices of Dangote refinery partners

Dangote Petroleum Refinery recently reduced the retail fuel petrol price of its partners' filling stations, which include MRS, Ardova Plc (AP), Heyden, Optima Energy, TechnoOil, and Hyde.

Here are the new changes

• Lagos: N875
• South-West: N885
• North-East: N905
• North-West & Central: N895
• South-South: N905

Price cuts could be strategic, not just competition — Expert

As Dangote Refinery’s entry prompts petrol price cuts by depot owners, energy economist Dr. Eyitemi Adegboye told Legit.ng the move marks a shift in Nigeria’s fuel supply dynamics.

She explained that private refineries are disrupting the traditional fuel import-dependent system that has long defined Nigeria’s downstream sector.

As she put it:

“The activation of private refineries is disrupting the old order of Nigeria’s petrol supply chain.”

On the price cuts, Dr Adegboye referenced classical and modern economic theories to explain the evolving market tactics:

“Theoretically, competition should drive efficiency and lower costs for consumers. This aligns with Adam Smith’s invisible hand theory, where self-interested market players compete, leading to price reductions and better quality.”

“However, some depot owners accuse Dangote Refinery of attempting to monopolize supply, raising concerns over whether these cuts are truly competitive or just an initial price-lowering strategy to consolidate market control.”

“Moreover, the game theory of pricing suggests firms engage in strategic moves—lowering prices temporarily to push competitors out before eventually raising them again once dominance is secured.”

True competition, regulation crucial for lasting petrol price cuts

Dr. Adegboyega further warned that Nigerians may benefit in the short term, but lasting relief would depend on true competition and strong regulation:

“If Dangote’s cuts are aimed at short-term market capture rather than genuine price competition, Nigerians may see initial relief followed by price stabilization or even increases.”

Looking ahead, Dr Adegboye advised Nigerians to manage expectations while calling for vigilant oversight from regulators:

“Nigerians should be cautiously optimistic. If Dangote Refinery and other private players foster genuine competition, sustained price reductions are possible. However, regulatory oversight will be crucial, without proper checks, a dominant market player could dictate prices rather than allow competition to thrive.”

“What Nigerians should demand is transparency, regulatory vigilance, and continuous supply efficiency—these will determine whether private refineries genuinely serve consumer interests or gradually push the market towards controlled pricing.”

Steps to become a distributor

Dangote released steps for Nigerians looking to become partners with its refinery as petroleum product distributors.

According to the Dangote Group, businesses and individuals must follow a simple four-step process to become official distributors of its petroleum products across Nigeria.

In a statement, the company said the first step is to initiate the process by sending an email to groupcommercialops@dangote.com to express interest in distributorship.

Dangote Refinery stated that upon successful contact, prospective distributors will proceed to the registration stage, where they will be issued a Dangote Refinery registration PIN.

Dangote denies marketers claim of monopoly

Earlier, Legit.ng reported that Dangote Refinery has refuted claims by depot owners that the refinery cannot meet Nigeria’s domestic fuel demand

The refinery officials disclosed that the plant has sufficient fuel to meet domestic supply needs and for exports

Depot owners had accused the Dangote Refinery of trying to monopolise the local market by embarking on petrol price cuts

Olufemi Adewole, DAPPMAN’s executive secretary, disclosed that despite the refinery’s size, it has not met the demands of the local market, saying private depot owners continue to meet the needs of the domestic fuel market by importation.

Editorial assistant Ololade Olatimehin provided exclusive commentary from an energy economist for this report.

Source: Legit.ng