The Nigerian diesel market is experiencing intense competition as Dangote Petroleum Refinery prepares to review its AGO (diesel) price downward. Independent oil marketers have undercut Dangote’s current marketer’s price of ₦1,033 per litre, sparking fears among importers and heightening market competition.
Independent Depots Selling AGO Below Dangote’s Price
Recent market intelligence reports confirm that at least two major depots are selling AGO at lower prices than Dangote:
- AA Rano (Lagos) – ₦1,029 per litre
- Menj (Lagos) – ₦1,030 per litre
- Dangote (Lagos) – ₦1,033 per litre
With these reduced prices, many oil marketers are opting for diesel from importers, further pushing Dangote to reconsider its pricing strategy.
Tanker Positions Confirm Rising Diesel Supply
The Daily Oil and Gas Intelligence Report (25th February 2025) shows that multiple depots have recently imported large volumes of AGO, increasing supply and leading to price drops across the market. Key diesel imports include:
- Lagos-Tincan Port – 20,000 MT of AGO received by Chisco depot via MT Ardmore
- Lagos-Tincan Port – 20,000 MT of AGO received by Menj depot via Kastos 1
- Lagos-Apapa Port – AGO shipment inbound for AA Rano via Shamal
With diesel imports rising, many depots are being forced to lower prices to remain competitive, putting pressure on Dangote to respond with a further reduction.
Factors Driving Diesel Price Drop
- Surge in AGO Imports – Increased diesel imports have led to an oversupply, driving down depot prices.
- Stronger Naira – The ₦1,485/$ exchange rate has made AGO imports cheaper, reducing costs for marketers.
- Falling Crude Oil Prices – Brent crude dropped to $72.82 per barrel, making refining and importation costs lower.
Will Dangote Further Cut Diesel Prices?
With oil marketers selling lower than Dangote, industry analysts believe the refinery giant may announce another price cut soon to maintain its market share.
While this is good news for businesses and transport operators, independent importers are concerned about shrinking profit margins as the market becomes more competitive.
With diesel prices on a downward trend, all eyes are on Dangote Petroleum Refinery to see whether it will slash prices again to dominate Nigeria’s diesel market.