Depots and importers slash petrol price below Dangote's rate
By Aboki Forex —
Nigeria's diesel market has entered a fierce new phase of competition. Independent depot owners and importers have cut Automotive Gas Oil (AGO) prices below the official gantry rate of Dangote Petroleum Refinery. This price war is bringing relief to businesses and consumers.
The latest price cuts come days after Dangote Refinery reduced its diesel loading price by N100 per litre. That brought the ex-depot rate from N1,600 to N1,500 per litre. But instead of becoming the new market benchmark, the reduction sparked even sharper discounts among rival suppliers eager to retain customers and clear inventory.
Market checks show that African Terminal and A.A. Rano are now selling diesel at N1,495 per litre. Ibeto, Duport and Aiteo have cut their prices further to N1,490 per litre. These prices place them below Dangote's official rate.
Industry sources say the price crash is driven largely by inventory pressures. Many depot operators and importers are still holding diesel stocks acquired when prices were higher. They are now racing to sell before market prices decline further.
Most of the diesel currently in storage was purchased at much higher replacement costs, a major marketer said. Operators know that holding products in a falling market can quickly erode value. Many would rather absorb smaller losses now than risk larger losses later.
The focus has shifted from protecting profit margins to maintaining cash flow and ensuring rapid product evacuation. The priority now is turnover. Speed of sales has become more important than preserving margins.
The aggressive sell-off has intensified competition across Lagos depots. Marketers are adjusting prices frequently to keep products moving and attract buyers. Transport operators, manufacturers and bulk buyers are the main beneficiaries.