- Private depot operators adjust petrol prices to compete with Dangote Refinery’s rates
- Dangote Refinery resumes sales at N774 per litre, intensifying market competition
- Price alignment offers consumers potential short-term stability amid volatile global oil trends
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Private depot operators have announced fresh petrol prices in a move aimed at closing the widening gap between their rates and those of the Dangote Refinery.
The price adjustments follow renewed competition in Nigeria’s downstream petroleum sector after the refinery resumed sales of Premium Motor Spirit (PMS) to marketers.
Credit: Bloomberg/Contributor
Source: Getty Images
Dangote resumes sales at N774 per litre
Earlier reports showed that the 650,000-barrels-per-day Dangote Refinery restarted petrol sales at N774 per litre after a prolonged pause that had pushed PMS prices higher across the country.
The resumption came after the Nigerian Midstream and Downstream Petroleum Regulatory Authority brokered peace between the refinery’s management and depot operators.
Following the resolution, the refinery released a list of approved depot operators authorised to lift and distribute its products.
The move signalled a new phase of competition in the market.
Depots peg average price at N789
Fresh data from PetroleumPriceNG shows that private depots have now adjusted their prices to remain competitive.
According to the figures, petrol is currently sold at an average of N789 per litre across several depots.
A breakdown of the new rates indicates that:
- Pinnacle is selling PMS at N788 per litre
- Ardova has fixed its price at N790 per litre
- Dangote’s depot price stands at N788 per litre
- MENJ is selling at N792 per litre
The pricing strategy reflects a clear attempt by depot owners to align closely with the refinery’s rate while maintaining slim competitive margins.
Market Share Battle Intensifies
Industry observers say the latest adjustments underscore the growing contest for dominance in Nigeria’s downstream petroleum market.
A previous industry report indicated that Dangote currently controls about 63 per cent of Nigeria’s petrol market, aided by government conditions attached to the issuance of import licences.
However, energy policy analyst Adeola Yusuf of Platforms Africa believes the situation does not amount to a monopoly.
“The current war reflects the fluidity of the Nigerian downstream sector,” Yusuf said. “Though Dangote dominates supplies, other petroleum products such as AGO, ATK and JetA1 are more evenly distributed among importers, modular refineries and Dangote.”
He added that the refinery is simply well-positioned to compete both locally and internationally.
What this means for consumers
The recent price alignment suggests that marketers are repositioning to secure larger market shares and influence pricing dynamics.
For consumers, the competition could translate into short-term price stability, particularly as depots attempt to match or undercut one another.
Credit: Bloomberg/Contributor
Source: Getty Images
However, analysts warn that global crude oil trends remain a critical factor. With international oil prices rallying amid geopolitical tensions in Iran, there are concerns that domestic petrol prices could rise again in the coming weeks.
As Nigerians enter a new month, the downstream sector remains volatile, shaped by market forces, regulatory interventions and the expanding influence of the Dangote Refinery.
Private depot owners compete with Dangote
Meanwhile, Legit.ng earlier reported that private depot owners across Nigeria have adjusted petrol prices aimed at boosting sales, taking advantage of Dangote refinery, which raised its ex-depot price of Premium Motor Spirit (PMS) by N100.
Legit.ng recently reported that the refinery raised its petrol ex-gantry price from N699 per litre to N799 per litre.
The adjustment followed an earlier N129 price cut in December, when Dangote reduced PMS prices from N828 to N699 per litre.
Source: Legit.ng
