Independent fuel Depots are making a strong comeback in Lagos. They are undercutting the Dangote Petroleum Refinery on petrol (PMS) and diesel (AGO) prices. This competition is putting pressure on Dangote to review prices to protect its shrinking market share.
Until mid-May, Dangote controlled about 50% of the wholesale fuel market in Lagos. But as of June 2, 2025, rival depots are now matching or beating its prices. This change is attracting marketers who are looking to save on lifting costs.
Rivals Offer Lower Prices, Marketers Shift Sourcing
Four major depots, AITEO, MENJ, AA Rano, and Integrated, now match or undercut Dangote’s petrol price of ₦827 per litre. AITEO sells at ₦826 per litre. Though the difference is slight, it is enough to shift market dynamics.
In the diesel segment, competitors are strategically pricing below Dangote’s benchmark of ₦918 per litre. Rivals such as MENJ and NIPCO are offering prices in the ₦911–₦913 range, undercutting Dangote by up to ₦7 per litre to attract cost-conscious buyers.
These cheaper prices are pulling marketers back to Apapa and other private terminals. They can save over ₦300,000 per 33,000-litre petrol truck, and even more on diesel. Many have already changed their supply points to cut costs.
Dangote Faces Pressure to Review Pricing Strategy
Market watchers note that truck liftings at Dangote’s Lagos jetty have slowed noticeably, while volumes at depots such as AITEO and AA Rano continue to grow. Although exact percentages vary among trade sources, the shift suggests Dangote could surrender part of the market it captured earlier in the year if current pricing gaps persist.
Dangote still holds a price edge in cities like Warri and Port Harcourt. This is due to lower freight costs from its Lekki base. However, Lagos is Nigeria’s largest fuel market, and the competition there is intense.
Internal sources say Dangote may soon cut prices. A reduction of ₦10 to ₦20 per litre is under consideration. The refinery is currently reviewing offtake data from the second week of June.
Petrol prices across depots are starting to align, but diesel remains the real battleground. Traders expect any move by Dangote to set a new benchmark across Nigeria’s downstream market.
Independent depots are gaining momentum. If Dangote does not act fast, it risks losing even more ground in the country’s most competitive fuel market.