Diesel prices in Nigerian depots are getting closer to N900 per litre following an influx of supply, weak demand, and serious price-matching competition between private depot owners and the Dangote Refinery.

From the high of over N1,100 in March 2025, diesel now trades between N911 and N950 across major locations as at June 5, 2025.

There are higher expectations from observers that prices may fall further as the market remains oversupplied following the influx of diesel vessels and the ramp-up in diesel production from the Dangote Refinery.

Changes in Diesel prices

Data from PetroleumPrice.ng reveal that no fewer than 14 tankers carrying an estimated 341,800 metric tonnes of Automotive Gas Oil (AGO) arrived at Nigerian ports within just 24 days.

A source quoted said:

“This is a large influx. You can quote that write-up where the guy said maybe 14 or 15 tankers,” an industry source confirmed.

Dangote is set to reduce prices due to price-matching with private depots. With these factors, prices will drop.”

It is reported that there are depots with more diesels than those that only have petrol.

Who are the beneficiaries of the diesel drop

The major beneficiaries of the drop in diesel prices include transport and logistics firms, manufacturing companies, due to lower production costs, and motorists whose vehicles run on diesel.

“Marketers may have to reduce prices further to clear inventory. That could bring relief to manufacturers and logistics operators but poses risks for importers sitting on high-cost stock,” a PetroleumPrice.ng analyst noted.

An analyst quoted said:

"Marketers may have to reduce prices further to clear inventory. That could bring relief to manufacturers and logistics operators but poses risks for importers sitting on high-cost stock

“This is not just seasonal fluctuation; it’s structural pressure from overlapping supply sources,” one trader observed.

“If Dangote continues full-scale output, and demand stays this low, sub-₦900 diesel is not just possible it’s imminent.”

Snapshot of diesel prices in 10 depots as of June 5, 2025

Chisco - N911/litre
Mao - N912/litre
Ibachem - N915/litre
Wosbab - N915/litre
Prudent (Lagos) - N915/litre
Ibeto - N915/litre
Chipet - N915/litre
Intergrated - N915/litre
Dangote - N917/litre
Nipco (Lagos) - N925/litre

NNPC reduces petrol prices

Earlier, Legit.ng reported that the NNPCL slashed its petrol pump price to N870 per litre for its Lagos retail stations.

This new price represents a N10 reduction from the previous pump price of N880 per litre, and once again, returns to NNPC stations as the place to get the cheapest fuel.

Like NNPC, other fuel marketers have reduced fuel prices in Lagos.