Depot owners have begun selling petrol and diesel below prevailing Dangote Petroleum Refinery-linked market prices less than 24 hours after the refinery announced its latest reduction, as competition intensifies among fuel suppliers seeking to retain customers and sustain product evacuation.
Market checks conducted by Petroleumprice.ng on Wednesday showed that several Lagos depots adjusted their ex-depot prices downward, offering products at levels below those being sold by marketers lifting from Dangote Refinery.
For Premium Motor Spirit (PMS), Dangote-linked marketers traded at ₦1,178 per litre, while Aiteo lowered its price further to ₦1,175 per litre. Rain Oil, A.A. Rano, Bono, Integrated, Ascon and African Terminal were all quoted at ₦1,177 per litre.
A similar trend emerged in the diesel market. Automotive Gas Oil (AGO) supplied through Dangote channels was quoted at ₦1,601 per litre, while Rain Oil, A.A. Rano, Wosbab, Emadeb, Menj, Sahara, African Terminal and Bono all sold diesel at ₦1,600 per litre.
The latest round of price reductions highlights growing competition within the downstream market, with depot operators increasingly adjusting prices to defend market share and retain customers in an environment where buyers have become more price-sensitive.
The pricing adjustments also come amid a sustained decline in international crude oil prices.
Brent crude, which traded above $110 per barrel during the height of Middle East supply concerns in May, has fallen sharply following the peace framework reached between the United States and Iran and plans to reopen the Strait of Hormuz. The decline has lowered replacement costs for petroleum products and intensified competition among suppliers.
Industry sources told Petroleumprice.ng that depot owners are becoming more aggressive in their pricing strategies as marketers increasingly compare offers across multiple supply points before making purchasing decisions.
Several marketers noted that product buyers are no longer tied to a single source of supply, creating stronger competition for sales volumes and forcing suppliers to respond more quickly to market realities.
A depot operator familiar with the market dynamics said many facility owners are adjusting prices proactively to maintain customer loyalty and avoid carrying expensive inventories in a declining market.
The latest adjustments mark a departure from earlier months when many depots largely mirrored Dangote Refinery's pricing structure. Recent movements, however, suggest independent operators are becoming more willing to undercut competitors to attract volume as supply availability improves and market conditions soften.
Analysts say the development could exert further downward pressure on wholesale fuel prices in the coming weeks if crude oil prices remain subdued and competition for market share continues to intensify.
For marketers, the lower depot prices provide opportunities to source products at more competitive rates after months of operating in a volatile pricing environment. If sustained, the reductions could eventually filter through to retail filling stations, providing some relief to consumers.