Private petroleum depot owners in Lagos have intensified competition in Nigeria's diesel market after slashing Automotive Gas Oil (AGO) prices below Dangote Refinery's ex-depot rate, signalling a fresh pricing battle that could ease procurement costs for marketers and bulk consumers.
Checks by Petroleumprice.ng on Tuesday showed that several major independent depots reviewed their diesel prices downward to between ₦1,600 and ₦1,610 per litre, placing them below Dangote Refinery's prevailing gantry price of ₦1,650 per litre.
The latest adjustments come barely days after Dangote Refinery resumed diesel sales at ₦1,650 per litre, following an upward review from ₦1,500 per litre. While the refinery remains Nigeria's largest domestic supplier of diesel, the widening price gap suggests independent depot operators are increasingly adopting more competitive pricing strategies to attract buyers amid improving product availability.
Market data obtained by Petroleumprice.ng showed that Ibeto and Ibachem both reduced their ex-depot diesel prices to ₦1,600 per litre, representing the lowest confirmed rates in the Lagos market at the close of trading on Tuesday.
Other operators also implemented downward reviews. African Terminal, Duport, T.Time, and Gulf Treasure all adjusted their AGO prices to ₦1,605 per litre, while Integrated settled slightly higher at ₦1,610 per litre.
The development means marketers sourcing diesel from these private depots now enjoy a price advantage of between ₦40 and ₦50 per litre compared with purchases made directly from Dangote Refinery, a margin that could influence procurement decisions, particularly for bulk buyers supplying industrial users, manufacturing firms and commercial transport operators.
Industry analysts say the latest reductions reflect the increasing influence of competition within the downstream petroleum market rather than supply shortages. With more products entering the distribution network and depots seeking to sustain sales volumes, operators are relying on competitive pricing to strengthen their market share.
The price adjustments also come against the backdrop of softer international crude oil prices. Brent crude slipped below $83 per barrel after recent geopolitical tensions between the United States and Iran eased, reducing some of the pressure on refined product replacement costs. Although domestic diesel pricing is influenced by several factors, including freight costs and inventory replacement values, weaker global oil prices have provided additional room for marketers to moderate ex-depot rates.
Despite the growing competition, Dangote Refinery remains a dominant force in Nigeria's diesel market owing to its production capacity and extensive distribution network. However, the latest pricing trend suggests independent depots are becoming increasingly aggressive in defending their customer base as competition within the downstream sector continues to deepen.
Going forward, market participants will closely monitor whether Dangote Refinery responds with another price adjustment or maintains its current ex-depot rate. Should international crude prices remain under pressure and product supply continue to improve, marketers believe diesel prices could witness further reduction in the coming weeks, providing some relief to businesses that rely heavily on AGO for daily operations