Private Depot Owners Slash Fuel Price Below Dangote's Rate
- Private depots continue to stand their ground as they compete with Dangote refinery for customers
- Dangote refinery now plays a key role in the Nigerian fuel market offering prices sometimes lower than imported
- In a show of strength marketers have decided to reduce diesel and petrol prices, some lower than Dangote's rate
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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.
Dangote Refinery recently increased its diesel price to N950 per litre in response private depots have slashed their prices to N940 per litre, undercutting Dangote by N10.
Source: Getty Images
Petrol prices have also seen broad reductions, signaling growing competitiveness in Nigeria’s downstream sector.
Price war: Dangote and depots
For Diesel, depots such as Menj, Wosbab, Chipet, and Mao are selling diesel to marketers below Dangote prices.
It is a little different for petrol as Dangote price remain the most competitive as general market price is between N857 and N890 per litre across depots
Here is a snapshop of new petrol prices at depots and changes
- Gulf Treasure: N860 (-N8, -0.92%)
- NIPCO Lagos: N860 (-N4, -0.46%)
- AIPEC: N860 (-N5, -0.58%)
- TSL: N883 (-N1, -0.11%)
- MATRIX Warri: N880 (-N1, -0.11%)
- Dangote: N860
- Pinacle: N860 (-N5, -0.58%)
- Mainland & Northwest: N888 (-N2, -0.22%)
- Honeywell: N862 (-N1, -0.12%)
- Eterna: N863 (-N2, -0.23%)
- Aiteo: N858 (-N2, -0.23%)
- AA Rano: N861 (-N3, -0.35%)
- Rainoil Lagos: N861 (-N4, -0.46%)
- Bovas: N860 (-N3, -0.35%)
- Zamson: N880 (-N1, -0.11%)
- Prudent Oghara & Rainoil Delta: N880 (-N1 to -N3)
- Lister: N860 (-N5, -0.58%)
Source: Getty Images
Why prices is dropping?
Petroleumprice.ng reports that the recent price adjustments are driven by several factors. A 4% dip in global crude oil costs has provided depots with room to lower both diesel and petrol prices.
At the same time, the naira’s recent appreciation has eased the cost of dollar-denominated transactions for traders, enabling competitive price adjustments while protecting profit margins.
Additionally, private depots are strategically undercutting Dangote Refinery to maintain relevance in the sector, with analysts noting that independent operators are accepting slimmer margins to retain market share.
What the future holds
Analysts say the price cuts reflect the flexibility of Nigeria’s deregulated downstream market, where rates respond quickly to global oil trends and domestic competition.
With crude prices softening and the Naira holding firm, diesel and petrol prices could remain stable or decline further in the coming weeks, though year-end industrial demand may trigger new adjustments.
Nigerians rejoice as petrol price drops below Ghana
Earlier, Legit.ng reported that the price of Premium Motor Spirit (PMS), commonly known as petrol, paid by Nigerians is significantly less compared to many of their West African counterparts.
According to a new report from the Major Energies Marketers Association of Nigeria (MEMAN), the average price of petrol in Nigeria.
Nigerians are currently enjoying some of the cheapest petrol in West Africa.
Source: Legit.ng
