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
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petrol prices at private depots across Nigeria are now lower than those at 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.
Source: Getty Images
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.
Dangote’s pilot scheme, competition
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 stabilise prices, it has created new market competition.
Source: Getty Images
Price war in Nigeria’s fuel market continues
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.
Dangote gets an advantage
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.
Dangote announces new partner
Earlier, Legit.ng 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.
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Source: Legit.ng
