Why depot owners slashed petrol prices after Dangote's cut

• Depot owners person responded to the caller petrol terms slash by the Dangote Refinery with a caller terms cut
• The refinery precocious slashed its ex-depot prices from N840 per litre to N820, starring the depot owners to undercut the refinery
• The caller terms accommodation by the depots has intensified the substance warfare betwixt the depots and the mega refinery

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

In a swift effect to Dangote Refinery’s latest move, backstage substance depot owners person chopped their ex-depot petrol prices, intensifying contention crossed Nigeria’s deregulated downstream lipid market.

Barely 24 hours aft Dangote Refinery reduced its ex-depot complaint from ₦840 to ₦820 per litre, large backstage depots—Menj, MAO, and Pinnacle- responded by narrowing oregon closing the terms gap.

New depot prices look aft Dangote Refinery slashed petrol prices. Credit: Bloomberg/Contributor
Source: UGC

Dangote marketers charging much than the ex-depot rate

Latest marketplace checks amusement Menj selling astatine ₦822 per litre, portion some MAO and Dangote present commercialized astatine ₦823. Pinnacle follows intimately astatine ₦824 per litre. This constrictive terms scope suggests a deliberate strategy by backstage players to stay competitory amid Dangote’s expanding retail and wholesale footprint.

Interestingly, portion Dangote quotes ₦820 per litre astatine ex-depot level, its affiliated marketers are presently selling to autarkic filling presumption operators astatine ₦823 per litre.

This pricing discrepancy is offering backstage depot owners an opening, arsenic they lucifer oregon somewhat undercut Dangote’s retail proviso price.

Industry operators accidental depots are besides offering much flexible outgo plans and faster truck-loading times, making them a preferred enactment for immoderate retailers, particularly those operating successful high-demand municipality centres.

Private depots responding swiftly to terms cuts

This isn’t the archetypal clip backstage depot operators person adjusted rapidly to Dangote’s pricing strategy. Industry trends amusement that each simplification from the 650,000 barrels-per-day capableness refinery triggers contiguous countermeasures from competitors.

Petroleumpriceng reports that sources uncover that the latest simplification marks the eleventh clip Dangote has slashed petrol prices since January 2025.

Market watchers judge that a twelfth chopped whitethorn beryllium astir the country arsenic contention escalates and the refinery seeks to consolidate marketplace dominance.

August 15 organisation timeline fuels activity

Industry insiders constituent to August 15 arsenic a strategical day driving the existent flurry of terms adjustments.

That day marks the commencement of caller bulk organisation schedules and declaration renewals successful the downstream sector.

Private depots are looking to unafraid large deals up of this deadline, prompting a tactical pre-emptive expanse of the market.

Analysts accidental the unreserved is not conscionable astir pricing, but besides astir measurement commitments, lawsuit retention, and territorial power successful hubs specified arsenic Lagos, Warri, and Calabar.

Consumers win, but risks inactive linger

While end-users and retailers are apt to payment from the terms drops successful the adjacent term, stakeholders pass that persistent terms wars could present semipermanent instability.

Without regulatory checks, the fierce undercutting could weaken margins and impact proviso concatenation sustainability.

The existent deregulated scenery offers opportunities for assertive competition, but besides presents risks that could destabilise pricing equilibrium if near unchecked.

Dangote’s standard vs. depot agility continues

Despite its unmatched refining capableness and economies of scale, Dangote Refinery continues to look stiff contention from autarkic depots.

These players are proving agile, often adjusting prices wrong hours and offering commercialized incentives to gully successful substance retailers.

Some depots reportedly grip implicit 2 cardinal litres daily, indicating conscionable however aggravated the conflict for marketplace stock has become.

New petrol prices look arsenic Dangote Refinery, depot owners conflict for control. Credit: Bloomberg/Contributor
Source: Getty Images

Next moves whitethorn specify substance marketplace dynamics

As Dangote and depot owners proceed their terms chess match, the Nigerian substance marketplace faces 1 of its astir dynamic phases since the subsidy removal.

With strategical contracts, organisation deadlines, and user request each converging, the adjacent fewer weeks could signifier the pricing aboriginal of petrol successful Nigeria.

Marketers undercut Dangote arsenic petrol prices drop

Legit.ng earlier reported that respective filling stations person cut petrol prices beneath N900 per litre, days aft Dangote Refinery slashed its ex-depot terms by N40.

Many filling stations successful Lagos and Ogun states present merchantability petrol astatine N875 and N890 per litre.

However, immoderate petrol stations inactive sold the merchandise supra N900 per litre arsenic of Sunday, July 6, 2025.

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Source: Legit.ng