Diesel price war: Lagos depots undercut Dangote Refinery's new rate
By Aboki Forex —
Private depot owners in Lagos have started selling diesel below Dangote Petroleum Refinery's revised ex-depot price, less than 24 hours after Nigeria's largest refinery announced fresh price cuts.
Dangote Refinery on Wednesday, August 5 2026, reduced its gantry price for petrol from ₦1,215 to ₦1,165 per litre, and cut diesel from ₦1,650 to ₦1,570 per litre.
Depots move below Dangote's diesel price
Data from Petroleumprice.ng showed four Lagos depots moved to sell automotive gas oil, commonly called diesel, at ₦1,565 per litre. That is ₦5 below Dangote's revised rate. The depots are Integrated, African Terminal, Duport and Ibachem.
Three other marketers, Gulf Treasure, Wosbab and TMDK, chose to match rather than undercut the refinery. Each priced diesel at ₦1,570 per litre, in line with Dangote's benchmark.
The diesel segment recorded the sharpest competitive response. Some operators went beyond matching the refinery's price and actively offered a lower rate to attract bulk buyers.
Petrol prices stay slightly above refinery rate
The petrol market moved more cautiously. NIPCO, AA Rano and Aipec each listed premium motor spirit at ₦1,175 per litre, while Integrated and African Terminal quoted ₦1,179 per litre. Both figures sit marginally above Dangote's revised ex-depot price of ₦1,165 per litre.
The narrower spread in petrol pricing suggests depot operators are treading carefully in that segment, even as they compete aggressively on diesel.
The speed of the market's reaction reflects how competitive Nigeria's downstream fuel sector has become since domestic refining capacity expanded. Depot operators and independent marketers now adjust pricing quickly whenever a major refiner moves, rather than waiting days or weeks as was common under the previous import-dependent model.
What it means for consumers
The latest round of price cuts by Dangote Refinery, and the response from private depots, suggests price pressure in the sector is likely to persist, particularly on the diesel side where undercutting has already begun. As motorists anticipate potential relief from high fuel costs, experts forecast that a broader market adjustment could significantly ease living expenses for many households.