Ex-depot price falls ₦118 per litre in one week as competition intensifies.
LAGOS – Private petroleum depot owners in Lagos have slashed the ex-depot price of Premium Motor Spirit (PMS) by an average of 14%, a dramatic market shift directly attributed to competitive pressures from the newly operational Dangote Refinery.
Market surveys conducted on December 15, 2025, reveal a significant drop, with major private depots now selling petrol at ₦710 per litre. This marks a sharp decline from the average of ₦828 per litre recorded just a week earlier, on December 8.
The move is a direct response to the increasingly dominant market presence of Dangote Refinery-linked marketers, who have been offering petrol at approximately ₦703 per litre. Industry sources confirm this price advantage has made it untenable for independent depots to maintain their previous rates.
“Once Dangote marketers began selling at the ₦703 price point, our volumes at higher prices completely stalled,” a depot operator, who requested anonymity, told NewsFocus. “The Lagos market is highly sensitive and reacts faster to such shifts. We had to adjust to remain competitive and avoid a costly stock build-up.”
Key Depot Price Adjustments (₦/Litre):
· Menj Depot: ₦828 → ₦710
· Integrated Depot: ₦826 → ₦710
· Bovas Depot: ₦826 → ₦710
· A.A. Rano Depot: ₦829 → ₦710
Market analysts note that private depots initially attempted to hold prices close to the ₦800 mark but were forced to capitulate within days due to severely reduced sales activity.
This significant ex-depot price reduction is expected to intensify competition across the downstream supply chain. Observers predict that if the Dangote Refinery maintains its current supply volume and pricing strategy, further price reductions could cascade to retail outlets, particularly during the high-demand holiday season.
The development marks one of the most substantial market corrections since the Dangote Refinery began influencing local fuel supply, signaling a potential new era of price dynamics in Nigeria’s petroleum sector.
