Dangote Petroleum Refinery is facing fresh pressure to review its fuel prices after a wave of panic selling across the downstream market pushed independent depot prices lower, widening the gap with rates offered by marketers selling products sourced from the refinery.
Market checks conducted by Petroleumprice.ng on Thursday showed that Dangote Petroleum Refinery sold Premium Motor Spirit (PMS), commonly known as petrol, at ₦1,176 per litre, while Automotive Gas Oil (AGO), also known as diesel, traded at ₦1,600 per litre.
However, the latest round of price movements across Lagos depots reflected intensified panic selling, as marketers rushed to offload volumes amid expectations of further price declines and fears of holding high-cost inventory.
For petrol, Ascon Oil, Bono Energy, Integrated and African Terminal Ltd all sold at ₦1,172 per litre, marking one of the lowest PMS levels across the Lagos depot market in the current trading cycle.
The diesel market also recorded further pressure, with multiple operators converging at a lower pricing band.
Duport Midstream, African Terminal Ltd and Ibeto Energy all sold Automotive Gas Oil (AGO) at ₦1,565 per litre, reflecting a fresh downward adjustment across key Lagos depots.
Other depot operators, including Menj Oil, Rainoil Limited, Wosbab Energy, Emadeb Energy and A.A. Rano, all sold at ₦1,570 per litre, showing that while a segment of the market has moved lower, others have maintained current levels amid mixed trading conditions.
Industry sources told Petroleumprice.ng that the current market downturn is being amplified by panic-driven trading behaviour, as marketers accelerate sales to avoid losses from potential further price drops.
"There is significant pressure in the market at the moment," a depot marketer said.
"Many marketers are moving products aggressively because they do not want to be left holding expensive inventory if another price review comes. If depot prices continue to decline, it could increase pressure on Dangote's prices."
According to the source, trading activity has become increasingly tactical, with many buyers slowing purchases in anticipation of lower prices, while sellers are simultaneously rushing to clear stock.
"Some buyers are deliberately waiting on the sidelines to see whether prices fall further. Sellers, meanwhile, are trying to clear volumes quickly before the next market adjustment," the source added.
Market participants said this combination of panic selling and cautious buying has intensified competition among depot operators, forcing suppliers to cut prices more aggressively to sustain product evacuation and protect cash flow.
The latest market movements also come against the backdrop of weaker international oil prices. Global crude benchmarks extended losses as Brent crude fell to $77.86 per barrel, down 2.12%, while West Texas Intermediate (WTI) dropped to $74.90 per barrel, a 2.46% decline as at 6pm WAT.
A source familiar with pricing operations at Dangote Petroleum Refinery told Petroleumprice.ng that the refinery is closely monitoring the widening gap between gantry prices and independent depot pricing.
“If private depots consistently sell below Dangote’s gantry price, the refinery will be forced to review its prices downward,” the source said.
“The market is fully deregulated, and pricing is highly sensitive to competition. When independent depots sustain lower levels, it becomes increasingly difficult for any major supplier to maintain a higher benchmark.”
As panic selling continues to ripple through the depot market, industry observers are closely watching whether sustained declines in prices could trigger a downward adjustment in Dangote Petroleum Refinery’s gantry pricing in the coming days.