Dangote Refinery Set for Another Fuel Price Cut as Lagos Depots Undercut Petrol, Diesel Rates
- Dangote Petroleum Refinery may reduce its petrol and diesel prices again, as several Lagos depots now offer fuel at slightly lower rates
- Depot operators have cut PMS and AGO prices to attract customers, intensifying competition in Nigeria’s downstream petroleum market
- Increased fuel imports and greater product availability are driving the price war, forcing suppliers to closely monitor and adjust their pricing strategies
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Dangote Petroleum Refinery may be compelled to cut its petrol and diesel loading prices again as competition among fuel depots in Lagos continues to heat up, with several operators now offering products at rates slightly below the refinery’s ex-depot prices.
Market figures obtained from Petroleumprice.ng on June 1, 2026, indicate that depot operators have been aggressively adjusting prices for both Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel, in a bid to attract buyers and maintain market share.
Source: Getty Images
The development highlights the growing fuel price war in Nigeria’s downstream petroleum sector, where suppliers are increasingly competing on cost, product availability and delivery efficiency.
Rival depots undercut Dangote’s petrol prices
Dangote Refinery recently reviewed its PMS loading price to N1,253 per litre, while diesel was maintained at N1,701 per litre. Although the refinery remains one of the most competitive suppliers in the market, several private depots have now moved ahead with lower petrol prices.
Data from the market showed that Aiteo, African Terminal, Integrated Energy, Aipec and Ardova reduced their PMS loading prices to N1,251 per litre, placing them below Dangote’s current rate.
Other operators, including Bono, Quest and Ascon, sold petrol at N1,252 per litre, while Techno Oil offered the product at N1,254 per litre.
The narrowing price gap is increasing pressure on suppliers to review their pricing strategies in order to retain customers.
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Dangote Refinery releases fresh petrol prices 24 hours after rate cut, depot operators join
Diesel market also sees aggressive price cuts
Competition has also intensified in the diesel segment. While Dangote’s diesel price of N1,701 per litre remains among the lowest in the market, rival depots have responded with a series of reductions.
Ibeto and Aipec adjusted their AGO prices to N1,703 per litre, while Swift quoted N1,704 per litre. African Terminal, Duport, Nipco and Menj all revised their diesel prices to N1,705 per litre.
These adjustments reflect growing efforts by depot operators to stay competitive as buyers increasingly compare prices across multiple suppliers before making purchases.
Imported fuel supplies builds market competition
A source within Dangote Refinery disclosed that the company may consider another downward review if competing depots continue to maintain lower loading prices.
The source said:
"Depot prices are now slightly below ours. If anything, we might go down if those depot prices remain lower."
According to the source, the refinery is closely monitoring market trends and could respond if rivals sustain their current pricing levels.
Source: Getty Images
The intensified competition is being driven partly by increased availability of petroleum products and the resurgence of imported fuel supplies in the domestic market.
Recent import allocations have expanded sourcing options for marketers, creating stronger competition between imported products and locally refined fuel.
Dangote Refinery to process 130 crude types
Meanwhile, Legit.ng earlier reported that Dangote Refinery plans to increase the number of crude oil grades it can process from about 40 to 130 as part of an expansion project.
The expansion aims to double the refinery’s capacity to 1.4 million barrels per day and make it more competitive in global energy markets.
The refinery expects lower operating costs, greater flexibility in sourcing crude from different countries, and stronger long-term export partnerships.
Source: Legit.ng
