Petrol Prices Crash as Dangote Refinery’s Bold Move Forces Depots to Slash Rates
Petrol Prices Crash as Dangote Refinery’s Bold Move Forces Depots to Slash Rates
Nigeria’s downstream oil sector is bracing for a seismic shift as Dangote Petroleum Refinery sets its petrol gantry price at ₦820 per litre, effective Monday, September 15, 2025.
The refinery’s direct supply of Premium Motor Spirit (PMS) — complete with free nationwide delivery- is already disrupting depot pricing.
By absorbing logistics costs, typically an extra ₦10–₦20 per litre, Dangote has redefined the rules of engagement in the market.
Expected pump prices are projected to stabilise at ₦841 in Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, while Abuja, Rivers, Delta, Edo, and Kwara may see prices hover around ₦851.
The ripple effect was immediate. Independent depots in Lagos, Calabar, and Port Harcourt began slashing prices to stay competitive ahead of Dangote’s rollout
By eliminating delivery charges, Dangote is undercutting one of the main revenue streams for depot operators.
This strategy not only appeals to marketers eager for cheaper, reliable supplies but also forces rivals to rethink efficiency in a market long dominated by transport mark-ups.
According to PetroleumPriceNG, Industry analysts say the strategy could accelerate consolidation among depots, as smaller players may struggle to sustain operations under the new pricing regime.
