Marketers Rush to Dangote Refinery As New Petrol Price Attracts Buyers
- Fuel marketers are routing more trucks to Dangote Petroleum Refinery after its diesel price dropped, competing with Lagos depots below
- Dangote priced its diesel at N1,580 per litre on August 19, sitting N70 to N85 below Pinnacle and Ardova, respectively
- The price gap means a marketer loading 33,000 litres from Dangote saves up to N2.81 million compared to buying from rival depots
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Tanker queues have returned to Dangote Petroleum Refinery as fuel marketers redirect their trucks there to take advantage of the refinery's lower diesel prices, with the price gap against competing Lagos depots now running into tens of naira per litre.
Data from Petroleumprice.ng showed that Dangote's Automotive Gas Oil (AGO) was selling at N1,580 per litre on August 19, while Pinnacle was charging N1,650 per litre and Ardova N1,665 per litre on the previous day.
Source: Getty Images
Several other suppliers, including Ibeto, Ibachem, Duport, Gulf Treasure, Integrated, African Terminal and T.Time, were listed at N1,660 per litre.
For petrol, the differential is smaller but remains significant for high-volume buyers.
Dangote’s N1,165 gantry price is N30 below Pinnacle’s N1,195 offer and N34 below NIPCO’s latest N1,199 listing, while the refinery’s marketers’ N1,175 resale price also remains competitive against most Lagos depots.
Dangote Refinery: What price gap means for buyers
The cost difference carries real weight for high-volume purchasers.
A marketer lifting 33,000 litres from Dangote would pay roughly N2.31 million less than one sourcing the same quantity from Pinnacle, and about N2.81 million less than buying from Ardova at its quoted price, BusinessDay reports.
That scale of saving has been enough to shift loading decisions, with some marketers adjusting their supply plans and sending trucks to the refinery even where additional travel time and waiting costs are involved.
If Dangote sustains its price advantage, competing depots may face growing pressure to close the gap or risk losing loading volumes to the refinery on a more permanent basis.
Here is a snapshot of prices on Wednesday, August 19.
- Dangote-linked: N1,165 from previous rate of N1,175
- Pinnacle depot: N1,168
- Masters depot: N1,185
- Liquid Bulk depot: N1,187
- Sigmund depot: N1,187
- T.S.L depot: N1,187
- Nepal depot: N1,195
- Parker depot: N1,195
- African Terminal depot: N1,198
- Ardova depot: N1,198
- Integrated depot: N1,198
- NIPCO depot: N1,198
- Aiteo depot: N1,200
- Rain Oil depot: N1,200
- Fynefield depot: N1,220
Source: Getty Images
AGO petrol price
- Dangote depot: N1,577
- Aradel depot: N1,600
- Pinnacle depot: N1,625
- Ibachem depot: N1,660
- T.Time depot: N1,660
- African Terminal depot: N1,665
- Ardova depot: N1,665
- Duport depot: N1,665
- Gulf Treasure depot: N1,665
- Ibeto depot: N1,665
- Sahara depot: N1,665
- TMDK depot: N1,665
- Integrated depot: N1,690
- NIPCO depot: N1,690
- Rain Oil depot: N1,690
- Fynefield depot: N1,710
- A.Y.M Shafa depot: N1,720
Dangote Refinery expands free petrol delivery
Earlier, Legit.ng reported that Dangote Petroleum Refinery extended its free petrol delivery programme to four additional states, with Kano, Imo, Anambra, and Nasarawa now joining the six states already covered by the initiative.
The scheme previously covered Lagos, Ogun, Rivers, Kaduna, Abuja, and Delta. With the latest expansion, a total of 10 states across Nigeria now fall within the programme's reach.
Under the arrangement, qualifying marketers can procure petrol at N1,165 per litre and receive it at no extra delivery cost.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
