Private Depots Slash Petrol Prices Following Dangote Refinery’s Price Reduction

Private petroleum depot owners in Lagos have reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by about ₦118 per litre, representing a cut of roughly 14 per cent, following recent price reductions by the Dangote Refinery.

Businessman Aliko Dangote said on Monday that “we are going to use whatever resources we have to make sure that we crash the price down. We don’t want to see people, this December and January, selling petrol for more than N740 nationwide. For those who want to keep the price high to sabotage the refinery, we will fight as much as we can to make sure that these prices are down.”

Market surveys conducted on December 15, 2025, showed that major private depots dropped their PMS prices to ₦710 per litre, down from an average of ₦828 per litre recorded a week earlier on December 8.

Checks across key depots revealed uniform price adjustments. Menj Depot reduced its price from ₦828 to ₦710 per litre, while Integrated Depot and Bovas Depot both cut prices from ₦826 to ₦710 per litre. A.A. Rano Depot also lowered its rate from ₦829 to ₦710 per litre.

Reports revealed that the reduction from marketers is linked to the Dangote Refinery, which has been offering petrol at around ₦703 per litre in Lagos. According to a depot operator, the Lagos market has been particularly sensitive to Dangote’s pricing strategy.

“The Lagos market reacts faster because Dangote’s prices are cheaper here,” the operator said. “Once Dangote marketers began selling around ₦703 per litre, it became difficult to move volumes at higher prices.”

Private depot owners initially attempted to maintain prices close to ₦800 per litre, but sluggish sales and the risk of stockpiling unsold products forced them to adjust their rates downward to remain competitive.