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

Private depots have challenged Dangote Refinery by slashing petrol prices below its rate, thereby escalating the fuel price war.

As of Thursday, July 3, 2025, several depots in Lagos closed petrol sales at N839 per litre, N1 below Dangote’s N840 ceiling, indicating a bold move to reclaim the market and undercut Dangote’s growing influence nationwide.

Legit.ng reported that the refinery just onboarded about 15 new marketers to sell its products nationwide and help to tighten its grip on the market.

Industry experts confirm that the pricing strategy by private depot owners is not a coincidence.

They reveal that it is a calculated move to undercut the mega refinery ahead of its planned nationwide fuel distribution and logistic support to end-users.

Dangote is expected to unleash 4,000 CNG-powered trucks by August 15, in a strategic move to disrupt distribution economics and pressure depot profits.

According to Petroleumpriceng, as of July 2, about four depots, including First Royal, MenJ, MAO, and Aiteo, all based in Lagos, sold petrol at N839 per litre.

The depots are taking slim margin positions to hold onto their market share and forestall further migration to Dangote’s growing supply chain.

According to the report, Dangote Refinery may respond with another downward price review by July 3, 2025.

The review is expected to upstage the depots’ N839 per litre benchmark.

A trader at Ibru Jetty reportedly said that depot owners have realised that Dangote is not just another supplier but a major disruptor. So, they are fighting with the only available tool.

Meanwhile, diesel prices have stayed relatively stable across depots, but the real battle is now petrol, the high-demand, high-volume product driving customer pump prices and transport costs.

Dangote’s supply edge is stoking intense competition, and the pressure is accelerating.

Analysts have acknowledged Dangote’s superior product handling and logistics capability. 

However, the recent price cut by depot owners offers immediate relief on cost, especially for independent marketers operating on a slim profit.

If Dangote crashes its ex-depot price below N839 per litre in the coming days, it could trigger a larger realignment of depot pricing plans, despite exerting financial strains on dollar-based imports and offshore sourcing.

Analysts say Nigeria’s downstream sector has entered into a new era of price-driven competition led by refinery power and logistics scale.

Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has lowered its petrol prices nationwide following the new ex-depot cost announced by the Dangote Refinery on June 30, 2025.

Recall that Legit.ng reported that the new price from Dangote Refinery has yet to reflect at the pumps, with marketers saying that they are still dispensing old stock purchased at N900 per litre.

The marketers said if they adjusted their pumps to reflect the new pricing offered by the mega refinery, they would incur a loss of N80 to N100 per litre.

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Source: Legit.ng