N710/Litre: Petrol Depot Owners Crash Prices as Dangote’s Deal With Marketers Collapses
- Nigerian petrol prices drop to lowest levels in months amid intense market competition
- Supply agreement collapse between Dangote Refinery and marketers fuels price volatility
- Experts predict further petrol price reductions as global crude oil prices remain low
Petrol prices at Nigerian depots have dropped to their lowest levels in months as intense competition grips the downstream market, following the apparent collapse of the fuel supply agreement between the Dangote Petroleum Refinery and independent marketers.
Fresh findings show that depot owners have slashed ex-depot prices to as low as N710 per litre, a sharp reversal from the steep hikes recorded just weeks earlier.,
Source: Getty Images
Dangote maintenance rumours triggered price surge
In the first week of January 2026, depot owners sharply increased gantry prices after reports emerged that the Dangote Refinery had shut down its petrol production unit for maintenance.
Although the refinery denied the reports, the speculation was enough to jolt the market.
Depot prices surged, and the increases quickly filtered through to filling stations nationwide.
Independent marketers raised gantry prices from around N720 per litre to over N800 per litre, with analysts noting that depot operators were exploiting uncertainty surrounding Africa’s largest refinery.
Depot owners reverse course as competition intensifies
The price spike, however, has proven short-lived.
Checks reveal that depot owners have now reversed course, cutting prices aggressively to stay competitive with Dangote Refinery’s pricing structure, especially as fresh fuel imports enter the Nigerian market.
Data from PetroleumPriceNG shows that several major depots reduced prices significantly in recent days.
As of Sunday, January 11, 2026, ShellPlux sold petrol at N710 per litre, MAO at N715, while A.Y.M. Shafa and Optima listed prices around N790 per litre, all below the N800 mark.
Falling crude oil prices add more pressure
Energy experts say global oil market dynamics are also contributing to the decline in local petrol prices.
“Crude oil is currently trading between $50 and $60 per barrel in the international market,” energy policy analyst Adeola Yusuf told Legit.ng.
According to him, ongoing geopolitical tensions involving Venezuela and Iran have pushed crude prices lower, with direct implications for refined fuel costs.
“Crude oil is often used as a political tool and is highly sensitive to geopolitical developments. When prices drop, refined product prices usually follow, especially in domestic markets,” Yusuf explained.
Dangote–marketers deal collapse fuels imports
Meanwhile, a previous Legit.ng report revealed that the fuel supply agreement between the Dangote Petroleum Refinery and 20 major petroleum marketers collapsed barely a month after it was signed.
The deal, reached in October 2025, was structured as a pilot scheme under which the marketers would collectively offtake 600 million litres of petrol monthly, about 30 million litres per marketer, according to Punch.
Source: Getty Images
It was expected to stabilise supply and cool pump prices. Instead, disagreements over pricing, worsened by falling global petrol costs, led to its breakdown and triggered a renewed wave of fuel imports.
More price cuts expected
Industry experts now anticipate further reductions in petrol prices in the coming weeks if global crude oil prices remain subdued and competition among depots continues.
For motorists, the emerging price war could offer some much-needed relief after months of volatile fuel costs.
Dangote, NNPC, others crash petrol prices by N153
Legit.ng earlier reported that Fresh data from the National Bureau of Statistics (NBS) shows that the average price of Premium Motor Spirit dropped by ₦153 per litre between November 2024 and November 2025, easing pressure on households, transport operators and businesses grappling with high costs.
The decline, driven by supply improvements and stronger competition involving major players such as Dangote Refinery and the Nigerian National Petroleum Company Limited, signals a gradual recalibration of the downstream petroleum sector after months of turbulence.
According to the NBS PMS Price Watch Report for November 2025, the average retail price of petrol fell to ₦1,061.35 per litre, compared with ₦1,214.17 recorded in the same period last year.
Source: Legit.ng
