Petrol Depot Prices Crash 14% After Dangote’s Rate Cut, Nigerians Rush to Buy
- The Dangote Refinery’s petrol price slash has driven down depot costs nationwide ahead of the yuletide season
- Findings show that petroleum product importers cut their prices by 14% to stay competitive with the mega refinery
- According to checks, petrol now sells for as low as N710 per litre in major depots in Lagos
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Private petroleum depot owners in Lagos have slashed the price of Premium Motor Spirit by about 14 per cent following Dangote Refinery’s latest reduction in gantry prices.
The move has intensified competition in Nigeria’s downstream oil market and sparked a rush by marketers to restock at cheaper rates.
Source: Getty Images
Market checks show PMS now selling for as low as ₦710 per litre at major Lagos depots, down sharply from an average of ₦828 per litre recorded just a week earlier.
The sudden drop marks one of the steepest weekly adjustments in recent months and reflects growing pressure on private depot operators to remain competitive.
How prices changed within seven days
As of December 8, 2025, PMS prices at selected Lagos private depots stood at elevated levels. Menj sold at ₦828 per litre, Integrated and Bovas at ₦826, while A.A. Rano traded around ₦829. These prices placed the market average at roughly ₦828 per litre.
By December 15, the picture had changed dramatically.
According to data from PetroleumPriceNG, the same depots reviewed prices downward to ₦710 per litre across board.
The ₦118 reduction per litre represents a 14.25 per cent price cut, signalling a rapid market reset driven by fierce competition rather than regulation.
Dangote Refinery forces market realignment
Industry players attribute the price crash largely to Dangote Refinery’s sustained gantry price cuts and aggressive downstream pricing strategy.
Dangote-linked marketers are currently selling PMS around ₦703 per litre in Lagos, leaving private depots with little room to maintain higher rates.
Initially, several depot owners attempted to hold prices close to ₦800 per litre, hoping demand would remain strong.
However, slow off-take, growing stock levels and buyer resistance quickly forced a rethink.
Within days, prices were adjusted downward to align more closely with Dangote-linked supply.
A depot operator explained that Lagos reacts faster than other markets because of its proximity to supply and high consumption volume.
Once cheaper Dangote products flooded the market, selling at higher prices became increasingly difficult.
Lagos emerges as price battleground
Lagos remains Nigeria’s largest fuel consumption hub, making it the first market to reflect pricing shifts.
Analysts say the current trend highlights how Dangote Refinery is increasingly shaping pricing behaviour, particularly in coastal and high-volume regions.
The competition has also benefited marketers and bulk buyers, many of whom are rushing to lift products while prices remain low.
Some industry watchers believe the price cuts could help ease pump prices in the coming weeks if logistics and retail margins adjust accordingly.
What comes next for petrol prices
Analysts warn that while the current price drop is significant, its sustainability depends on Dangote Refinery maintaining supply levels through the festive period.
If supply remains steady, further price alignment across other depots and regions is possible.
However, any disruption in supply or rise in distribution costs could slow the downward momentum.
For now, the Lagos market is sending a clear signal that competition has intensified, and petrol pricing is entering a more dynamic and responsive phase driven by market forces rather than speculation.
Meanwhile, a prior report by Legit.ng showed that retail outlets owned by the Nigerian National Petroleum Company Limited (NNPC) slashed pump prices.
Source: Getty Images
Legit.ng checks show that in Lagos, the NNPC has cut the pump price of Premium Motor Spirit (PMS) from N890 to N875 per litre, while in Abuja, the price fell from N920 to N915 per litre.
The adjustments follow Dangote’s decision to reduce its gantry price to N699 per litre and set the retail price at N739 per litre at its partner filling stations.
Meet Nigeria’s top 10 petroleum depot owners in Nigeria
Legit.ng earlier reported that while Dangote Refinery dominates headlines, the real lifeline of Nigeria’s petroleum supply often rests in the hands of independent depot owners.
These players store, distribute, and move millions of litres of fuel daily, ensuring petrol stations and the economy keep running.
From Lagos harbours to Calabar Free Trade Zones, they compete fiercely for market share, influence, and strategic advantage.
Source: Legit.ng
