Dangote competition pushes depot petrol prices down by up to ₦81 per litre

Petrol wholesale prices have fallen by as much as ₦81 per litre at major depots as competition between Dangote Petroleum Refinery and independent fuel marketers intensifies. Several Lagos depots cut wholesale prices between October 26 and October 30, while rates in Calabar also declined.

Motorists may see some relief, but depot cuts do not guarantee equal reductions at filling stations.

Lagos depots lead price cuts

The adjustments have triggered a fresh round of price competition in Nigeria's downstream petroleum sector, forcing depot operators to review wholesale rates to attract buyers and maintain market share. Marketers are responding to changing international oil prices, increased domestic fuel availability and competitive pressure from Dangote Refinery's distribution network.

Between October 26 and October 30, petrol prices declined across several Lagos depots, with average reductions reaching approximately ₦81 per litre. African Terminal reportedly reduced its petrol price from ₦1,340 to ₦1,260 per litre, an ₦80 decrease. Ardova also adjusted its wholesale price from ₦1,340 to ₦1,260 per litre during the period. Other depot operators, including Matrix and independent marketers, reviewed their offers in response to changing market conditions.

Dangote Petroleum Refinery and marketers under its consortium arrangement adjusted petrol prices, with reported gantry offers falling to approximately ₦1,210 per litre. The refinery has maintained a significantly lower ex-gantry price than several depots. The reductions have placed independent depot operators under pressure to review their prices or risk losing customers to competitors offering cheaper products. Industry observers say competition is particularly intense in Lagos, where several petroleum storage facilities compete for bulk buyers.

Calabar, crude and FX

In Calabar, some reported wholesale prices fell towards ₦1,298 per litre, although actual rates vary by supplier, location and transaction date. International crude oil prices remain another important factor influencing domestic petrol prices. Lower crude benchmarks can reduce refining costs and imported petrol prices, depending on exchange rates, freight charges and contractual arrangements.

However, the relationship is not automatic. Nigeria's downstream market remains sensitive to foreign exchange movements, logistics expenses and international petroleum product prices. Consequently, declining crude prices do not necessarily translate into immediate or equivalent reductions at filling stations.

What it means for motorists and businesses

For motorists, transport operators and businesses, sustained wholesale price reductions could eventually ease operating costs. But depot prices differ from retail pump prices, which include transportation, distribution margins and other expenses. A reduction of ₦81 per litre at the depot therefore does not guarantee an identical decrease at filling stations.

Stronger competition between Dangote-backed marketers and independent suppliers could create further opportunities for price adjustments. The downstream market has also seen considerable price differences between Lagos, Warri, Calabar and Port Harcourt, raising questions about how the widening price gap could affect fuel marketers and motorists. For millions of Nigerians struggling with expensive transportation and rising living costs, the biggest test will be whether the wholesale reductions translate into meaningful savings at the pump.