Private oil depots in Lagos have begun selling diesel at prices lower than Dangote Refinery’s ex-depot rate, intensifying competition in Nigeria’s downstream oil market.
Over the past week, diesel prices have dropped by nearly 3%, sliding from ₦985 to ₦958 per litre, according to market intelligence reports. Industry experts describe the decline as a “price adjustment triggered by oversupply,” signaling the start of a fierce price war among top fuel marketers.
As of Wednesday, October 8, 2025, several depots—including TTIME, MENJ, GULF TREASURE, and DUPORT—were selling Automotive Gas Oil (AGO) at ₦958 per litre, slightly below Dangote’s ₦960 ex-depot benchmark.
The development marks a shift in Nigeria’s fuel market, where prices are increasingly dictated by supply and demand rather than refinery benchmarks.
Market data reveals that more than 40 depots nationwide currently hold substantial diesel inventories, a situation attributed to reduced demand from industries and transport operators switching to solar and compressed natural gas (CNG) alternatives.
“Most depots are struggling to sell,” a senior marketer in Apapa told reporters. “Tanks are full, vessels are discharging, and buyers are waiting for prices to fall further. The only way to move products now is to undercut the big players.”
Analysts say the trend could benefit consumers—particularly transporters and manufacturers—through lower operating costs. However, they warn that sustained price cuts may squeeze smaller marketers already battling high logistics and financing costs.
Industry watchers now await Dangote Refinery’s next move. Should the refinery lower its own prices to stay competitive, Nigerians could soon witness another round of diesel price reductions.
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