Diesel Price War: Depot Owners Sell Below Dangote's Rate Within 24 Hours After Review
- Private depot owners dropped diesel prices below Dangote Refinery's revised ex-depot rate less than 24 hours after the refinery cut its prices
- Dangote Refinery slashed petrol to ₦1,165 per litre and diesel to ₦1,570 per litre on Wednesday, triggering an immediate reaction
- At least four Lagos depots undercut Dangote's diesel price, while petrol prices across most depots stayed slightly high
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Private depot owners in Lagos have begun selling diesel below Dangote Petroleum Refinery's revised ex-depot price, less than 24 hours after Nigeria's largest refinery announced a fresh round of price cuts.
Dangote Refinery on Wednesday, August 5, 2026, lowered its gantry price for petrol from ₦1,215 to ₦1,165 per litre and cut diesel from ₦1,650 to ₦1,570 per litre. The announcement triggered an almost immediate repricing across the downstream sector.
Source: Facebook
Depots undercut Dangote on diesel
Data from Petroleumprice.ng showed that four Lagos depots moved to sell automotive gas oil (AGO), commonly called diesel, at ₦1,565 per litre, which is ₦5 below Dangote's revised rate. The depots named are Integrated, African Terminal, Duport, and Ibachem.
Three other marketers, Gulf Treasure, Wosbab, and TMDK, chose to match rather than undercut the refinery, each pricing diesel at ₦1,570 per litre in line with Dangote's benchmark.
The diesel segment recorded the sharpest competitive response, with some operators going beyond simply matching the refinery's price to actively offering a lower rate in a bid to attract bulk buyers.
Petrol prices remain slightly higher
The petrol market moved more cautiously. NIPCO, AA Rano, and Aipec each listed premium motor spirit (PMS) at ₦1,175 per litre, while Integrated and African Terminal quoted ₦1,179 per litre. Both figures sit marginally above Dangote's revised ex-depot price of ₦1,165 per litre.
The narrower spread in petrol pricing suggests that depot operators are treading more carefully in that segment, even as they compete aggressively on diesel.
Competition intensifies in Nigeria's fuel market
The speed of the market's reaction reflects how competitive Nigeria's downstream fuel sector has become since domestic refining capacity expanded.
Depot operators and independent marketers now adjust pricing quickly whenever a major refiner moves, rather than waiting days or weeks as was common under the previous import-dependent model.
Source: Getty Images
The latest round of price cuts by Dangote Refinery and the subsequent response from private depots suggest that price pressure in the sector is likely to persist, particularly on the diesel side where the undercutting has already begun.
Dangote's price cut sparks competition
Legit.ng earlier reported that the Dangote Refinery's recent reduction in ex-depot petrol prices has begun influencing private fuel depots across Nigeria.
As motorists anticipate potential relief from high fuel costs, experts forecast that a broader market adjustment could significantly ease living expenses for many households.
Source: Legit.ng
