Petrol Price War Intensifies as Depots Undercut Dangote; NNPC Introduces New Pump Rate
Petrol prices are dropping nationwide as depot owners undercut Dangote Refinery, sparking intense competition and driving consumer relief.
NNPC and major retailers have slashed pump prices, boosting fuel availability and easing queues while reshaping Nigeria’s fuel market dynamics.
Petrol prices are falling across Nigeria as depot operators slash rates below the benchmark set by Dangote Refinery, sparking fierce competition in the fuel market. The Nigerian National Petroleum Company Limited (NNPC) has joined the fray, reducing pump prices at its filling stations to offer consumers relief amid rising living costs.
The battle for dominance in Nigeria’s fuel market has escalated as independent depot owners cut petrol prices below Dangote Refinery’s ex-depot rates, igniting intense price competition in the downstream sector. The Nigerian National Petroleum Company Limited (NNPC) has also responded by adjusting its retail prices, further heating up the race to win over consumers.
According to recent data from Petroleumprice.ng, several major depots across Lagos, Warri, and Delta State have started selling premium motor spirit (PMS) at prices lower than Dangote’s. Companies such as Aiteo, AIPEC, A.A. Rano, and NIPCO are now selling petrol at rates between ₦826 and ₦827 per liter as of Wednesday, June 3, 2025. In contrast, Dangote Refinery’s ex-depot average rate sits at ₦830 per liter.
Among the 21 depots surveyed, Masters Depot stood out with the highest price at ₦870 per liter, surpassing Hyde and Ever depots, which offered ₦869. Others, such as Sigmund and TSL, quoted ₦868, while Pinnacle Warri and First Fortune listed ₦856 and ₦855, respectively. Meanwhile, Rainoil Lagos, A&E, Matrix Warri, Prudent Oghara, and A.Y.M. Shafa maintained a moderate pricing of ₦850.
At the lower end, Aiteo led with the most competitive price of ₦826 per litre, with AIPEC, Menj, A.A. Rano, and Integrated following closely at ₦827, creating a major shift in depot dynamics.
On the retail side, Dangote Refinery’s distribution partners, including MRS, Ardova Plc, Heyden, TechnoOil, Optima Energy, and Hyde, were instructed to adjust their pump prices downward to between ₦875 and ₦905 per liter, depending on the location. This represents a drop from earlier rates that ranged between ₦890 and ₦920.
NNPC retail outlets in Lagos quickly matched the trend, cutting their prices from ₦880 to ₦870 per liter. This move triggered similar responses from other marketers, such as Mobil, which reduced its price at the Ikotun branch to ₦875. Petrocam, Matrix, and other fuel stations have followed suit, leading to widespread relief for motorists.
The wave of price reductions has brought noticeable improvements across the fuel distribution chain. Petrol has become more readily available, and queues at stations have diminished significantly. Commuters like Amina Bello have praised the changes, saying, “Fuel is now easier to find, and I don’t have to spend hours waiting.”
Another customer, Tunde Adebayo, highlighted improved service: “I’ve noticed quicker staff response, and the fuel quality has been good. No engine issues since the price dropped.”
While consumers are benefiting in the short term, analysts urge caution regarding long-term sustainability and supply stability. The market shake-up, though welcome, may have deeper implications on profitability and regulation if unchecked.
Meanwhile, in a related development, the Nigeria Customs Service has announced the sale of over 39,000 liters of seized petrol at ₦400 per liter. The fuel was recovered during anti-smuggling operations in Lagos and Ogun, with eight vehicles also confiscated in a bid to curb illegal fuel exports to neighboring countries.
This wave of competition is reshaping Nigeria’s fuel economy, offering rare respite to citizens amidst economic hardship.
