Nigeria’s petroleum market has entered another wave of price cuts as Dangote Petroleum Refinery and private depot operators slash petrol and diesel prices across key supply hubs.

This move comes even as international oil benchmarks surged, with Brent crude trading at $66.60 per barrel and West Texas Intermediate (WTI) climbing to $63.15.

Price movements across depots

Industry analysts say the contrast highlights a deepening price war in the downstream sector, as depot owners battle to retain market share against Dangote’s aggressive expansion.

In Lagos, depot prices edged downward despite costlier global crude. Dangote refined petrol sold for ₦821 per litre, slightly lower than the previous ₦821.5, while AITEO cut its petrol price to ₦820.5, down from ₦821.

For diesel (Automotive Gas Oil, AGO), Dangote dropped to ₦970 from ₦991, and AITEO reduced to ₦972 from ₦985.

In Warri, Matrix adjusted its petrol price to ₦837 from ₦838, while Rainoil kept PMS stable at ₦838 but trimmed diesel to ₦1,020 from ₦1,028. Taurus followed, cutting AGO to ₦1,020 from ₦1,030.

Calabar also recorded softening rates. Evergreen cut PMS to ₦832 from ₦835, while Zone 4 aligned its rate to ₦832 from ₦837. Alkanes, however, maintained their price at ₦840.

Port Harcourt depots joined the trend as Masters dropped AGO to ₦1,034 from ₦1,045, Bulk Strategic to ₦1,039 from ₦1,045, and TSL shaved petrol to ₦837, compared to ₦839 earlier.

Market dynamics behind the price cuts

The downward adjustment in depot prices is not a reflection of easing crude costs but of intensifying competition in Nigeria’s fuel distribution network.

Dangote Refinery, which recently launched a nationwide distribution plan and rolled out CNG-powered trucks, is disrupting the traditional supply chain.

Its lower ex-depot pricing model is forcing rival depots and importers to adopt what marketers call a “defensive pricing strategy.”

According to a report by Petroleumpriceng, by deliberately cutting prices or holding them down, private depot operators aim to prevent Dangote from consolidating too much power in the distribution network.

This cautious approach is designed to retain customers and slow the refinery’s growing dominance in Nigeria’s downstream market.

Competition to intensify

Analysts believe the current wave of price reductions is only the beginning of a prolonged battle for control of Nigeria’s fuel market.

“Depot operators are prioritising market share over margins right now,” one industry analyst explained.

“But if global crude oil prices continue to rise, the cost pressure could force them into more strategic adjustments.”

With Nigeria’s downstream sector undergoing rapid transformation, the competition between Dangote Refinery and depot owners is reshaping pricing dynamics, supply chains, and market power.

For consumers, the immediate effect is lower pump prices, but for industry players, the long-term impact could redefine the country’s fuel economy.

Dangote Refinery sparks hope of cheaper fuel

Legit.ng earlier reported that Nigeria’s journey toward a cheaper and more reliable petrol supply has taken a major step forward as independent marketers begin formal registration with the Dangote Refinery for direct fuel delivery.

The refinery, Africa’s largest, is scheduled to start distributing Premium Motor Spirit (PMS) and diesel directly to retailers from August 15, bypassing traditional depots and intermediaries.

This development follows the company’s earlier announcement on June 15, 2025, of plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers nationwide.