Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

In a swift response to Dangote Refinery’s latest move, private fuel depot owners have cut their ex-depot petrol prices, intensifying competition across Nigeria’s deregulated downstream oil market.

Barely 24 hours after Dangote Refinery reduced its ex-depot rate from ₦840 to ₦820 per litre, major private depots—Menj, MAO, and Pinnacle- responded by narrowing or closing the price gap.

Latest market checks show Menj selling at ₦822 per litre, while both MAO and Dangote now trade at ₦823. Pinnacle follows closely at ₦824 per litre. This narrow price range suggests a deliberate strategy by private players to remain competitive amid Dangote’s expanding retail and wholesale footprint.

Interestingly, while Dangote quotes ₦820 per litre at ex-depot level, its affiliated marketers are currently selling to independent filling station operators at ₦823 per litre.

This pricing discrepancy is offering private depot owners an opening, as they match or slightly undercut Dangote’s retail supply price.

Industry operators say depots are also offering more flexible payment plans and faster truck-loading times, making them a preferred option for some retailers, especially those operating in high-demand urban centres.

This isn’t the first time private depot operators have adjusted quickly to Dangote’s pricing strategy. Industry trends show that every reduction from the 650,000 barrels-per-day capacity refinery triggers immediate countermeasures from competitors.

Petroleumpriceng reports that sources reveal that the latest reduction marks the eleventh time Dangote has slashed petrol prices since January 2025.

Market watchers believe that a twelfth cut may be around the corner as competition escalates and the refinery seeks to consolidate market dominance.

Industry insiders point to August 15 as a strategic date driving the current flurry of price adjustments.

That date marks the commencement of new bulk distribution schedules and contract renewals in the downstream sector.

Private depots are looking to secure major deals ahead of this deadline, prompting a tactical pre-emptive sweep of the market.

Analysts say the rush is not just about pricing, but also about volume commitments, client retention, and territorial control in hubs such as Lagos, Warri, and Calabar.

While end-users and retailers are likely to benefit from the price drops in the near term, stakeholders warn that persistent price wars could introduce long-term instability.

Without regulatory checks, the fierce undercutting could weaken margins and affect supply chain sustainability.

The current deregulated landscape offers opportunities for aggressive competition, but also presents risks that could destabilise pricing equilibrium if left unchecked.

Despite its unmatched refining capacity and economies of scale, Dangote Refinery continues to face stiff competition from independent depots.

These players are proving agile, often adjusting prices within hours and offering commercial incentives to draw in fuel retailers.

Some depots reportedly handle over two million litres daily, indicating just how intense the battle for market share has become.

As Dangote and depot owners continue their price chess match, the Nigerian fuel market faces one of its most dynamic phases since the subsidy removal.

With strategic contracts, distribution deadlines, and consumer demand all converging, the next few weeks could shape the pricing future of petrol in Nigeria.

Legit.ng earlier reported that several filling stations have cut petrol prices below N900 per litre, days after Dangote Refinery slashed its ex-depot price by N40.

Many filling stations in Lagos and Ogun states now sell petrol at N875 and N890 per litre.

However, some petrol stations still sold the product above N900 per litre as of Sunday, July 6, 2025.

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Source: Legit.ng