Dangote Refinery Cuts Diesel Price by N30, Sparks Fierce Price War With Oil Depots
- Dangote Refinery has sparked another round of price war by lowering the ex-depot price of Automotive Gas Oil, also known as diesel.
- The refinery’s latest diesel price cut comes a few days after it slashed its petrol rate, setting the tone for competition
- The new action has triggered depot price adjustments as importers and marketers scramble to match the refinery’s rate
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The mega Dangote Refinery has slashed its diesel prices again, a few days after lowering petrol rates from N850 to N820 per litre.
The current price slash has intensified the price war between the refinery and depot owners and is reshaping Nigeria’s downstream petroleum market.
Source: Getty Images
Dangote slashes diesel price by N30
The giant refinery reduced its depot prices for diesel from N990 per litre to N960 per litre, representing a N30 slash.
Petroleumpriceng reported that some depots still sell the product for between N985 and N990 per litre, but dealers say Dangote’s new rate is pressuring the market.
Analysts confirmed that the reduced prices apply to bulk purchases of up to two million litres, showing the facility’s aggressive push to lead the market and capture market share from marketers and distributors.
Marketers scramble to adjust
According to reports, by cutting its ex-depot price, the refinery has forced rival depots and importers to lower their rates.
The competitors face higher landing costs and slimmer margins, making it challenging to match Dangote’s pricing advantage.
The price cut has already triggered price volatility in diesel supply chains, as consumption is recovering in transport, manufacturers, and off-grid power generation. Marketers are recalculating procurement plans to stay competitive.
Fuel market responds to crude prices
The price slash shows trends in the international oil market.
Brent crude sold at $66 per barrel on Monday, August 18, 2025, down by 0.90%, extending a larger fall in global benchmarks.
Analysts say Dangote is leveraging the refinery to consolidate domestic market share and weaken import dependence.
Analysts see positive changes
As the days go by, analysts expect the price war to deepen as Dangote Refinery uses the facility’s size and local refining capacity and economies of scale to direct the Nigerian diesel market.
As independent marketers battle for survival, they now depend on declining margins with sustained demand.
The Nigerian downstream sector is entering into a new phase via aggressive pricing, shifting supply chains, and Dangote’s growing influence.
Source: Getty Images
Financial analyst Osas Igho believes that Nigeria is gradually becoming a net exporter of petroleum products as the Dangote Refinery ramps up production to full capacity.
“We are seeing a shifting dynamics in refining, sales, and export of petroleum products. Dangote’s entry into the mix has altered the dynamics, locally and internationally.
There is pressure on importers, but that is the advantage of competition and a deregulated market. The market sets the tone and controls demand and supply,” he said.
Oil marketers adjust petrol pump prices
Legit.ng earlier reported that filling stations across Nigeria have adjusted their pump prices following the scarcity of petrol, which has entered the second week.
Legit.ng findings show that petrol stations in Lagos, Abuja, Port Harcourt, and Kano have adjusted their prices upwards due to the scarcity.
Most petrol stations selling the product in Lagos adjusted their pump prices to N750 per litre from the N630 they sold the product before the scarcity began.
Source: Legit.ng
