Petrol Price May Drop Below N800/Litre as Dangote Faces Pressure From Depots, Crude Crash
- Energy experts are eyeing another petrol price cut from the Dangote Refinery following increased pressure from depot owners
- Already, depots have matched the mega refinery’s price of N820 per litre, pushing the refinery into a tight corner
- Also, the current crude oil price drop is pressuring refineries around the world, including Dangote, to readjust their prices
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Energy experts are optimistic that the 650,000 bpd-capacity Dangote Refinery may cut petrol prices again to or below N800 per litre, marking a third cut in over a week.
According to them, a sharp drop in global crude prices and stiff competition from private depots are forcing Dangote Refinery into a tight corner.
Source: Getty Images
Dangote Refinery to reduce petrol price below N800
Industry watchers now expect Africa’s largest refinery to review its PMS prices for the 12th time in 2025, with a potential slash below N800 per litre possibly in the offing.
A prior report by Legit.ng disclosed that private depots in Lagos have already matched Dangote’s latest ex-depot prices of N820 per litre.
The immediate response shows a deliberate strategy to retain high-volume marketers and undercut the refinery’s scale advantage.
Depot owners match Dangote’s price
Petroleumpriceng disclosed that depot bulk marketers said this depot-level price realignments aim to discourage major marketers, especially those purchasing two million litres per week, from switching from Dangote.
As of July 10, 2025, several depot owners sold PMS at varying prices, including Dangote at N820 per litre, AIPEC at N821, Menj at N821, Pinnacle at N821, AA Rano at N821, respectively, while Aiteo sells at N823 per litre.
Reports say Dangote’s pricing model is under additional attack from global oil market volatility.
Crude oil price crash pressure Dangote
As of Tuesday, 10, 2025, global crude benchmarks dipped in prices driven by renewed US-Iran nuclear talks.
The market reacted to the news that the US may lift sanctions on Iran, which could lead to a supply glut and further price depreciations.
Latest market data shows the diesel segment of the petroleum product market is also under pressure.
Diesel prices across coastal depots have reduced, showing improved marine supply and bearish global sentiment.
This price softening across the board shows a wider calibration in refined product pricing and procurement plans.
Marketers prepare for August 15 fuel rollout
Apart from market dynamics, the proposed August 15 nationwide fuel distribution cycle by Dangote Refinery is increasing competition.
Retailers and other agencies are rushing to lock in products ahead of allocation deadlines.
New PMS price is in the offing?
Experts say all signs show that Dangote Refinery may reduce its ex-depot price for PMS to N795 or lower in the coming days.
Such a move would mark the facility's 12th petrol price adjustment in six months.
Source: Getty Images
A combination of global crude volatility, private depot battles, and imminent allocation deadlines makes it all plausible that the mega refinery may revisit its pricing strategies.
Marketers undercut Dangote Refinery
Legit.ng earlier reported that Several filling stations have cut petrol prices below N900 per litre, days after Dangote Refinery slashed its ex-depot price by N40.
Many filling stations in Lagos and Ogun states now sell petrol at N875 and N890 per litre.
However, some petrol stations still sold the product above N900 per litre as of Sunday, July 6, 2025.
Source: Legit.ng
