Private depots undercut Dangote as diesel prices fall in Lagos

By Isaac Joseph Inyang

Private depots in Lagos have slashed diesel prices below Dangote Refinery’s ex-depot rate, intensifying competition in Nigeria’s downstream oil market.

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 per litre. The price drop represents nearly a 3 percent decline from last week’s average of ₦985 per litre.

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According to Daily Oil and Gas Market Intelligence, over 40 depots nationwide currently have diesel stored in their tanks, indicating an oversupply that has forced marketers to reduce prices in order to clear excess inventory.

Industry experts say the fall in prices is the result of weak demand caused by a growing shift among businesses and transport operators to alternative energy sources such as solar power and compressed natural gas (CNG). This shift has left marketers with large unsold volumes of diesel.

A senior oil marketer in Apapa confirmed that most depots are struggling to sell. “The 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,” the marketer said.

Although Dangote Refinery currently sets a standard ex-depot price for AGO, private depots’ decision to sell at lower rates has disrupted the refinery’s pricing structure. Analysts suggest that if Dangote decides to reduce its price further to maintain competitiveness, Nigerians could see another round of diesel price cuts.

Experts believe the ongoing price war could benefit consumers, particularly manufacturers and transport operators who rely heavily on diesel. However, they caution that smaller marketers may face financial strain due to shrinking profit margins and high operational costs.

The development underscores a growing shift in Nigeria’s oil market, where market forces of supply and demand are increasingly dictating prices, reducing the long-standing dominance of refinery-based pricing systems.