Petrol prices have taken a new twist in Nigeria’s downstream petroleum sector as private depot owners have slashed their petrol ex-depot prices to N840 per litre to match the rate of Dangote Refinery.

The price cut has sparked a fresh wave of competition in the market, reshaping the supply mix and stoking fears of a price war.

Is Dangote trying to capture the market?

Legit.ng previously reported that on June 30, 2025, the 650,000 bpd-capacity refinery slashed its ex-depot price from N880 to N840 per litre.

The facility attributed the cut to lower crude oil prices on the international market and improved domestic logistics.

However, experts see it as a strategic move to expand market control and pressure depot operators into lowering their costs.

Four depot owners crash petrol prices

According to reports, within hours of Dangote’s price slash, about five major depot owners in Lagos, Warri, and Calabar matched the refinery’s N840 per litre rate to avoid customer loss.

Petroleumpriceng reported that as of July 1, 2025, several key private depots have aligned to undercut Dangote Refinery’s price in a move to retain essential customers and station operators.

Menj (Lagos): ₦840/L

First Royal (Lagos): ₦840/L

Mao (Lagos): ₦840/L

Emadeb (Lagos): ₦840/L

The new figures by depot operators show the urgency among owners to remain competitive, especially in coastal areas where distribution and truckload volumes are high.

New petrol prices: The winners and losers

Experts have predicted that the current depot price war could trigger another downward price review by Dangote in the coming days.

With depot owners now matching the giant refinery’s N840 per litre rate, the pressure is mounting.

Such a move could affect profit margins and reshape the competitive landscape, leading to the possible collapse of smaller depots that cannot compete.

Adeola Yusuf, energy policy analyst and Team Lead at Platforms Africa, noted that the current war is beyond price adjustment, but a survival battle.

“The consumers are on the winning side, as they are lapping up every move in this game. This is one of the benefits of a deregulated market. It allows market forces to dictate the pace for industry players,” he said.

Are depot owners at the losing end?

Reports say the ex-depot crash shows an all-out war between Dangote petrol and traditional players who still import large volumes of fuel for bulk buyers.

While the Lekki-based refinery refines over 10 million litres of PMS daily, most depot owners still navigate the uncertain global oil markets and high exchange rates for fuel imports.

Their landing costs usually exceed N870 to N910 per litre, putting them at a disadvantage in the market.

Filling stations adjust petrol prices

Findings show that fuel stations across Lagos, Ibadan, and Onitsha are already adjusting prices in response.

Dangote Refinery partner outlets, such as MRS, Ardova, Heyden, and others, are now selling petrol between 925 and 955 per litre, while private outlets try to avoid oversupply and customer loss.

In Lagos, motorists queued at filling stations offering lower prices, bypassing those selling at N920 per litre or more.

Depot owners slash petrol prices

Legit.ng earlier reported that petrol marketers in Lagos, Warri, and Calabar depots slowed their purchases on Monday, June 30, 2025, as feelers showed that Dangote Refinery would drop petrol prices.

The refinery later announced new petrol costs, setting the petrol ex-depot price at N840 per litre on Tuesday, July 1, 2025, from N880.

The new price has sparked price adjustments at petrol stations, especially outlets affiliated with the refinery.