Price War Deepens as Depot Owners Slash Petrol Prices to Rival Dangote Refinery
- Nigeria's downstream petroleum sector got embroiled in a fierce price war following Dangote Refinery's reductions
- Depot owners adjusted prices to compete with Dangote, with some lowering rates to around N780 per litre
- Consumers benefited as price cuts filter down to retail stations, potentially stabilising Nigeria's fuel market
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s downstream petroleum sector is witnessing an intense price battle as depot owners move swiftly to counter recent reductions by the Dangote Refinery.
The competition has triggered fresh adjustments in gantry prices, with operators cutting rates in a bid to retain customers and protect their share of the market.
Source: Getty Images
A prior report by Legit.ng revealed that the Lekki-based refinery reduced its petrol gantry price to N744 per litre.
The move sent ripples across the industry, forcing other players to reconsider their pricing strategies almost immediately.
Importers’ cuts spark chain reaction
Dangote’s latest adjustment came after fuel importers lowered their own prices amid reports that the refinery’s petrol production unit was undergoing maintenance.
Shortly after marketers reviewed their rates downward, the refinery responded with another price slash, accusing importers of attempting to destabilise its operations through aggressive pricing tactics.
The back-and-forth reductions have since escalated into a full-scale price war, reshaping supply dynamics across depots and retail outlets nationwide.
Depot operators join the fray
Checks show that depot owners have now aligned their prices with prevailing market realities.
Data released by PetroleumPriceNG indicates that several operators have adjusted their gantry rates to around N780 per litre, just N4 above Dangote Refinery’s price.
Among the key players, Eterna Oil reduced its price to N788 per litre. Fatgbems also cut its rate to N788, while Bono and Emadeb matched the same price point.
The coordinated reductions reflect mounting pressure on depot owners who must now compete directly with Africa’s largest refinery, which has rapidly transformed the country’s fuel supply chain.
Dangote’s market dominance
Industry analysts say the refinery’s sheer size and production capacity give it a commanding edge.
Energy analyst Adeola Yusuf noted in a chat with Legit.ng that Dangote currently controls roughly half of the downstream market and dominates distribution channels.
“For now, Dangote Refinery controls the market share and dominates distribution in the downstream sector,” he said.
The refinery’s integrated structure, access to crude supply, and large-scale refining capacity allow it to operate at lower costs compared to many import-dependent competitors.
This advantage has enabled it to respond quickly to market shifts and sustain competitive pricing.
Consumers stand to gain
While operators grapple for dominance, consumers appear to be the biggest beneficiaries of the ongoing rivalry.
The cascading price cuts at the depot level are gradually filtering down to retail stations, easing pump prices in several locations.
Market watchers believe that sustained competition could usher in a new era of price stability and transparency in Nigeria’s fuel market.
However, some caution that prolonged undercutting may squeeze margins and force weaker operators out of business.
For now, the petrol price war shows no signs of cooling. With Dangote Refinery defending its foothold and depot owners determined not to lose ground, the downstream sector remains in a state of strategic recalibration.
Source: Getty Images
As pricing strategies continue to evolve, the coming weeks will determine whether this competition results in long-term market balance or deeper structural shifts within Nigeria’s petroleum industry.
Marketers sell petrol N77 cheaper than Dangote Refinery
Legit.ng earlier reported that Imported premium motor spirit (PMS) emerged cheaper than petrol produced by the Dangote Refinery, according to the latest pricing data released by the Major Energies Marketers Association of Nigeria (MEMAN).
Figures published by MEMAN on Friday, February 7, 2026, show that the average landing cost of imported petrol stood at N721.80 per litre, significantly lower than the N799 per litre gantry price offered by the Dangote Refinery.
This represented a price difference of about N77.2 per litre, with imports holding the advantage.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
