Due to changes in the market, Dangote might be compelled to reassess the pricing of diesel and petrol.
Independent fuel depots are experiencing a significant resurgence in Lagos, offering petrol and diesel at lower prices than the Dangote Refinery. The ongoing competition is compelling Dangote to reassess its pricing strategy in order to safeguard its market share.
By mid-May, Dangote had dominance over nearly half of the wholesale fuel market in Lagos. However, as of June 2, 2025, competing depots have started to offer prices that either match or undercut those of Dangote. This shift is drawing in marketers eager to reduce their lifting expenses.
Four major depots—AITEO, MENJ, AA Rano, and Integrated—are now pricing their petrol at levels comparable to or even lower than Dangote’s rate of ₦827 per litre. Specifically, AITEO has set its price at ₦826 per litre. Although the price difference is minimal, it is significant enough to influence market dynamics.
In the diesel market, competitors are positioning themselves strategically by setting prices lower than Dangote’s standard rate of ₦918 per litre. Companies like MENJ and NIPCO are pricing their diesel between ₦911 and ₦913 per litre, undercutting Dangote by as much as ₦7 per litre to appeal to budget-conscious consumers.
Due to the reduced costs, marketers are returning to Apapa and various private terminals. By doing so, they can save over ₦300,000 per 33,000-litre petrol truck, and even more when it comes to diesel. A significant number have already shifted their supply locations to reduce expenses.
Market analysts observe that the number of trucks loading at Dangote’s Lagos jetty has declined. On the other hand, depot activity is on the rise at locations like AITEO and AA Rano. Although trade sources report varying figures, this trend indicates that Dangote might lose some of the market share it gained earlier this year if the current pricing differences continue.
Dangote maintains a pricing advantage in cities such as Warri and Port Harcourt because of reduced transportation expenses from its Lekki location. However, in Lagos, the largest fuel market in Nigeria, the level of competition is very high.
According to internal reports, there is a possibility that Dangote will reduce prices soon. They are considering a decrease of ₦10 to ₦20 per litre. The refinery is currently analyzing offtake data from the second week of June.
~Imrandhuz