Petrol prices are falling rapidly in Lagos, Ogun, and other Nigerian cities following the latest reduction in the ex-depot rate by Dangote Refinery.

A previous report by Legit.ng revealed that the mega refinery lowered its petrol ex-depot price to ₦828 per litre, down from ₦887, sparking swift reactions across the downstream sector.

The move triggered an immediate response from petroleum depot operators, many of whom slashed their own prices to align with the refinery’s new rate.

Pump prices crash in Lagos

Findings across the Lagos metropolis on Tuesday, October 11, 2025, showed that several filling stations selling Dangote petrol have adjusted pump prices to ₦900 per litre, down from ₦915 and ₦920.

Station managers confirmed to Legit.ng that the refinery’s price cut directly influenced the new retail rates.

“We are expecting further reductions in the coming days,” said Nurudeen Olalekan, a manager at an AP filling station in Ikoyi.

“Right now, we’re selling old stock bought at ₦887 per litre. Once we start receiving new supply at ₦828, prices could fall to ₦850 or even lower.”

Ogun stations follow with new reductions

Similar trends were observed in Ogun State, where stations operated by MRS and Heyden in the Ifo area dropped prices from ₦950 to ₦920 per litre, with operators hinting at more cuts ahead.

“Dangote’s price slash has had a major impact on depot and retail prices,” an attendant told Legit.ng. “If he maintains this structure, more reductions will follow.”

However, energy policy analysts have cautioned that Nigerians should not be too hopeful for too long as petroleum product prices are susceptible to crude oil prices.

“We can wake up tomorrow and prices have changed,” Adeola Yusuf, energy policy analyst, told Legit.ng on a call.

“By now Nigerians should be accustomed to a deregulated market and its volatility. Prices are not and will not remain stable,” he said.

Dangote’s pricing squeeze forces marketers to rethink imports

Meanwhile, the refinery’s persistent price cuts are forcing marketers to rethink fuel importation.

Major players admit that importing petrol has become unprofitable, especially with the Federal Government’s 15% import tariff on refined products, a move that further strengthens Dangote Refinery’s dominance.

“Imports will stop for now,” confirmed Clement Isong, Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN). “Dangote’s pricing is a game changer. It makes no economic sense to import when the refinery’s rate is cheaper.”

Inside Dangote’s pricing strategy

Isong explained that the refinery’s pricing model is based on import parity, factoring in global crude costs, freight, and logistics.

He added that Dangote monitors 30-day average prices rather than daily fluctuations, a strategy that stabilizes supply and pricing in the long term.

“If spot market prices rise, he’ll adjust upwards,” Isong said. “Otherwise, he risks leaving money on the table.”