Private Depot Owners Slash Petrol Price to ₦710 Per Litre as Competition Intensifies in Lagos

Private petroleum depot owners in Lagos have effected a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, cutting prices by as much as ₦118 per litre. The new price of ₦710 per litre represents a sharp drop of about 14 percent from the ₦828 per litre average recorded barely a week earlier, signalling a new phase of intense competition in Nigeria’s downstream oil market.

Market checks conducted on December 15, 2025, revealed that several major private depots adjusted their prices downward almost simultaneously, a move widely seen as a direct response to the aggressive pricing strategy adopted by the Dangote Petroleum Refinery and its affiliated marketers. The refinery’s recent decision to lower its petrol gantry price triggered a ripple effect across the Lagos fuel market, forcing private depot owners to realign or risk being priced out.

Among the depots that implemented the price cut are Menj Depot, Integrated Depot, Bovas Depot, and A.A. Rano Depot. Menj Depot reduced its ex-depot price from ₦828 to ₦710 per litre, while Integrated and Bovas depots dropped from ₦826 to the same ₦710 benchmark. A.A. Rano Depot, which previously sold at ₦829 per litre, also adjusted its price downward to ₦710. The uniformity of the new price point underscores how competitive pressures are shaping pricing decisions across the board.

Industry sources attribute the reduction largely to the growing presence of Dangote Refinery-linked marketers in the Lagos market, who have reportedly been offering petrol at around ₦703 per litre. According to one depot operator, Lagos tends to respond faster to price changes because of its proximity to supply sources and the sheer volume of daily transactions. Once Dangote-linked marketers began selling at significantly lower prices, it became increasingly difficult for private depots to move their stock at rates close to ₦800 per litre.

Initially, many private depot owners attempted to maintain higher prices, hoping the market would absorb the difference. However, sluggish sales, reduced truck turnout, and the looming risk of product buildup in storage tanks made that strategy unsustainable. Faced with the choice of holding expensive inventory or aligning with the new market reality, depot owners opted for price cuts to remain competitive and liquid.

The latest development is expected to intensify competition further in the downstream sector, particularly during the festive period when fuel demand typically rises. Analysts believe that if Dangote Refinery sustains its current supply levels and pricing posture, additional reductions could follow, especially if depots and marketers continue to struggle with turnover at higher price points.

For consumers, the price cut has been greeted with cautious optimism. Many Nigerians view the reduction as evidence that competition, rather than regulation alone, can deliver more affordable fuel prices. However, there is widespread scepticism about how quickly these depot-level reductions will translate into lower pump prices at retail filling stations. Past experience has shown that decreases at the wholesale level do not always reflect immediately, or proportionately, at the pump.

Beyond price, concerns about fuel quality and quantity remain prominent. Some stakeholders have called on regulators, including the Nigerian National Petroleum Company Limited (NNPCL) and relevant downstream authorities, to intensify oversight to ensure that consumers get value for money. Questions persist about the quality of imported fuel versus locally refined products, as well as the accuracy of dispensing pumps at filling stations.

The reduction to ₦710 per litre also revives the broader debate about fuel pricing in Nigeria following subsidy removal. While some argue that the current prices are still too high for the average Nigerian, others see the downward movement as proof that market forces are gradually correcting excesses that once thrived under opaque pricing and arbitrage.

In the medium term, the sustainability of these lower prices will depend on several factors, including crude oil prices, exchange rate stability, refinery output, and government policy on fuel imports. For now, however, the decision by private depot owners to slash prices marks a notable shift in the market and reinforces the growing influence of competition in reshaping Nigeria’s petrol pricing landscape.