The Dangote Refinery has reduced diesel prices once again, intensifying a price war that is reshaping Nigeria’s downstream petroleum market.
Depot Prices Cut to ₦960 per Litre
The refinery lowered its depot price for Automotive Gas Oil (AGO) from ₦990 per litre to ₦960 per litre, marking a ₦30 drop. Some independent depots are still selling between ₦985 and ₦990 per litre, but traders say Dangote’s new benchmark is putting heavy pressure on the market.
Industry sources confirmed that the reduced price applies to bulk volumes of up to two million litres, underscoring the refinery’s aggressive push to capture demand from marketers and distributors.
Competitive Pressures on Marketers
By slashing its pay-in price, Dangote has forced rival depots and import-dependent suppliers to adjust downward. These competitors face higher landing costs and thinner margins, making it difficult to match Dangote’s pricing advantage.
The adjustment has already created volatility in diesel supply chains. With consumption recovering in transport, manufacturing, and off-grid power generation, marketers are recalibrating procurement strategies to stay competitive.
Brent Crude Sets Broader Tone
The price cut also reflects trends in the global oil market. Brent crude traded at $66.00 per barrel on Monday, down 0.90% in the last 10 minutes, extending a broader slide in international benchmarks. Analysts say Dangote is leveraging this softer backdrop to consolidate domestic market share and weaken import reliance.
Market Outlook
Analysts expect the price war to deepen as Dangote uses its structural advantage local refining capacity and economies of scale to dictate direction in Nigeria’s diesel market.
For independent marketers, survival now depends on balancing shrinking margins with sustained customer demand. The downstream sector is entering a new phase defined by aggressive pricing, shifting supply chains, and Dangote’s growing dominance.