Revealed: Why depot owners crashed petrol prices after Dangote Refinery

• Private depot owners person taken the terms warfare to the Dangote Refinery by slashing their prices
• The caller determination has sparked a caller terms war, with depots rushing to lucifer the refinery’s complaint to debar lawsuit loss
• Experts foretell that the existent propulsion by depot owners could spot Dangote Refinery lowering its petrol prices further

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Petrol prices person taken a caller twist successful Nigeria’s downstream petroleum assemblage arsenic backstage depot owners person slashed their petrol ex-depot prices to N840 per litre to lucifer the complaint of Dangote Refinery.

The terms chopped has sparked a caller question of contention successful the market, reshaping the proviso premix and stoking fears of a terms war.

Consumers triumph arsenic Dangote and depot owners conflict with terms cuts. Credit: Picture Alliance/Contributor
Source: Getty Images

Is Dangote trying to seizure the market?

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

The installation attributed the chopped to little crude lipid prices connected the planetary marketplace and improved home logistics.

However, experts spot it arsenic a strategical determination to grow marketplace power and unit depot operators into lowering their costs.

Four depot owners clang petrol prices

According to reports, wrong hours of Dangote’s terms slash, astir 5 large depot owners successful Lagos, Warri, and Calabar matched the refinery’s N840 per litre complaint to debar lawsuit loss.

Petroleumpriceng reported that arsenic of July 1, 2025, respective cardinal backstage depots person aligned to undercut Dangote Refinery’s terms successful a determination to clasp indispensable customers and presumption operators.

• Menj (Lagos): ₦840/L
• First Royal (Lagos): ₦840/L
• Mao (Lagos): ₦840/L
• Emadeb (Lagos): ₦840/L

The caller figures by depot operators amusement the urgency among owners to stay competitive, particularly successful coastal areas wherever organisation and truckload volumes are high.

New petrol prices: The winners and losers

Experts person predicted that the existent depot terms warfare could trigger different downward terms reappraisal by Dangote successful the coming days.

With depot owners present matching the elephantine refinery’s N840 per litre rate, the unit is mounting.

Such a determination could impact nett margins and reshape the competitory landscape, starring to the imaginable illness of smaller depots that cannot compete.

Adeola Yusuf, energy argumentation expert and Team Lead astatine Platforms Africa, noted that the existent warfare is beyond terms adjustment, but a endurance battle.

“The consumers are connected the winning side, arsenic they are lapping up each determination successful this game. This is 1 of the benefits of a deregulated market. It allows marketplace forces to dictate the gait for manufacture players,” helium said.

Are depot owners astatine the losing end?

Reports accidental the ex-depot clang shows an all-out warfare betwixt Dangote petrol and accepted players who inactive import ample volumes of substance for bulk buyers.

While the Lekki-based refinery refines implicit 10 cardinal litres of PMS daily, astir depot owners inactive navigate the uncertain planetary lipid markets and precocious speech rates for substance imports.

Their landing costs usually transcend N870 to N910 per litre, putting them astatine a disadvantage successful the market.

Filling stations set petrol prices

Findings amusement that substance stations crossed Lagos, Ibadan, and Onitsha are already adjusting prices successful response.

Dangote Refinery spouse outlets, specified arsenic MRS, Ardova, Heyden, and others, are present selling petrol betwixt 925 and 955 per litre, portion backstage outlets effort to debar oversupply and lawsuit loss.

Depot owners lucifer Dangote Refinery's petrol terms arsenic consumers unreserved to buy. Credit: Bloomberg/Contributor
Source: Getty Images

In Lagos, motorists queued astatine filling stations offering little prices, bypassing those selling astatine N920 per litre oregon more.

Depot owners slash petrol prices

Legit.ng earlier reported that petrol marketers successful Lagos, Warri, and Calabar depots slowed their purchases connected Monday, June 30, 2025, arsenic feelers showed that Dangote Refinery volition driblet petrol prices.

The refinery aboriginal announced caller petrol costs, mounting the petrol ex-depot terms astatine N840 per litre connected Tuesday, July 1, 2025, from N880.

The caller terms has sparked price adjustments astatine petrol stations, particularly outlets affiliated with the refinery.

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Source: Legit.ng