Depot Owners Slash Petrol Prices as Dangote Refinery Sets New Market Rate

• Depot owners have lowered their petrol prices following the new costs from the Dangote Refinery on Tuesday, July 1, 2025
• The mega refinery’s price reduction slowed depot activities as marketers moved to quickly adjust their pricing
• Industry watchers say Dangote Refinery now sets the market tempo for petroleum product prices following increased output

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Petrol marketers in Lagos, Warri, and Calabar depots slowed their purchases on Monday, June 30, 2025, as feelers showed that Dangote Refinery will drop petrol prices.

The refinery later announced new petrol costs, setting the petrol ex-depot price at N840 per litre on Tuesday, July 1, 2025, from N880.

Fuel prices: Lagos depots sell PMS lower

The new price has sparked price adjustments at petrol stations, especially outlets affiliated with the refinery.

Data shows that Monday’s transactions were minimal, with many depots adjusting their prices downward in anticipation of new supply and pricing changes.

Petroleumpriceng disclosed in its report that petrol was sold at N869 per litre in Lagos at Aiteo depot, while Menj sold its petrol at the same rate.

Despite product availability, activities were low, as several depots postponed loading due to uncertainties around Dangote Refinery’s pricing.

New petrol prices: What happened at Warri depots?

The late release of new petrol prices by Dangote Refinery affected depot turnover on Monday, with sources saying that trading was slow throughout the day.

Some depots reportedly halted pricing in response to fears that the mega refinery will crash prices due to growing supply from the plant.

Depot owners in Warri, such as Matrix, sold petrol at N880 per litre, while A&E depot prices hovered around N879.

Marketers' approach at Warri depots was cautious, opting to delay purchases in anticipation of new prices from Dangote.

Calabar records ₦890 PMS prices

Fynfield in Calabar and Mainland depots sold petrol at the highest rate at N890 per litre.

The depot saw slower movement as market observers said that the cost difference with Lagos and Warri could influence future demand.

New Price: Is Dangote playing monopoly?

Experts have said that Dangote’s pricing movements now control market reactions, becoming a critical factor in how marketers position their rates, especially as the mega facility continues to dominate the Nigerian downstream sector.

According to reports, between June 23 and 27, 2025, private depots began undercutting Dangote Refinery by selling petrol at N870 to N874 per litre relative to Dangote’s previous rate of N880.

The trend reportedly extended to diesel, where Dangote’s N1,023 per litre was higher than the N1,000 sold by private depots across major terminals.

Dangote also lost an edge in the liquified natural gas (LPG) or cooking gas segment as marketers matched the refinery’s N890 per kilogramme price.

The push is forcing the 650,000 bpd-capacity refinery to reconsider pricing, as industry players say a further price drop may be near.

Marketers increase petrol depot prices

Legit.ng earlier reported that oil marketers raised the depot prices of PMS following rising demand and crude oil price spikes caused by the Middle East tension.

As of Monday, June 23, 2025, Brent crude sold at $77.88 per barrel and WTI at $74.67, with depot owners nationwide already adjusting prices upwards.

However, new data shows that crude oil prices slumped on Tuesday, June 24, 2025, as the US announced a ceasefire between Iran and Israel.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng