Dangote Refinery Sees Low Activity as Lagos Depots Trigger Petrol Price War With Cuts
- Depot owners in Lagos have crashed petrol price, increasing the pressure on the mega Dangote Refinery
- Reports say the Dangote Refinery is experiencing minimal activities as marketers prefer cheaper depots for product lifting
- Marketers are now cautious, findings showing that the refinery may slash petrol price to even out the rate and compete with importers
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Depot owners in Lagos have slashed petrol prices, intensifying pressure on the Dangote Refinery, which is already grappling with dwindling buyer interest.
On Tuesday, July 22, 2025, despite quoting N820.50 per litre for Premium Motor Spirit (PMS), the refinery experienced minimal activity.
Source: Getty Images
Lagos depots undercut Dangote’s ex-depot rate
Petroleum marketers are now adopting a cautious approach, holding off purchases amid strong indications that prices may dip further in the coming days.
“Trading was thin. Marketers came, saw the price, and left. They’re waiting," a refinery insider said.
Fresh pricing data from the Daily Oil and Gas Market Intelligence Report (July 22, 2025) reveals that several Lagos depots are now offering petrol at rates equal to or slightly below Dangote’s.
While the price differences may seem marginal, they carry significant weight for independent marketers operating on thin margins and bearing heavy logistical costs.
This psychological edge has tilted trader interest toward smaller, more competitive depots.
Price-sensitive buyers pause major lifting operations
Despite being Africa’s largest refinery, the Dangote facility witnessed sparse movement at its jetty on Tuesday. Traders who visited largely refrained from lifting product after reviewing pricing.
“No one wants to buy high today and get undercut tomorrow,” one downstream operator said.
Expectations had been high that Dangote would lower prices in response to growing stockpiles and rising inland supply — but no such cut came.
Nigeria’s downstream market is reshaping
This slowdown signals a major shift: deregulation is forcing refineries and depots to compete on price and efficiency as buyers become more selective and responsive to market data.
According to the price-tracking platform, Petroleumpriceng, marketers are increasingly tracking live price fluctuations and supply patterns, indicating a shift toward data-driven strategies that reshape both the timing and sources of bulk purchases.
“Volume lifting decisions are now based on timing, pricing, and how quickly we can recover at the pump,” one depot-level marketer noted.
Depots, refineries may cut rates to move stock
With uptake slowing and competition intensifying, analysts say it’s only a matter of time before refineries — including Dangote — cut prices to stimulate demand. Traders are also closely watching incoming cargoes and depot storage levels, which may trigger even more competitive pricing in the days ahead.
Source: Getty Images
If current trends continue, a weekend price correction seems not just likely — but necessary.
Dangote’s CNG truck rollout divides marketers
Legit.ng earlier reported that with the imminent deployment of 4,000 Compressed Natural Gas (CNG) trucks by Dangote Petroleum Refinery, Nigeria’s downstream oil sector is abuzz with both anticipation and anxiety.
The company’s free distribution model promises to cut costs for marketers but has sparked concerns about monopoly and job losses among industry players.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) admits its members feel they have no real alternative.
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Source: Legit.ng
