Again, Dangote Slashes Petrol Price, Announces New Rate

• Dangote Refinery's consortium marketers cut the petrol gantry price by N55, from N1,265 to N1,210 per litre
• The reduction followed a decline in the European gasoline benchmark, EBOB, which underpins the refinery's pricing model
• Lagos depots also lowered their prices, with several operators slashing rates by more than N40 per litre in response to Dangote's move

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Dangote Petroluem Refinery has reduced its petrol gantry price by N55 to N1,210 per litre, from N1,265 per litre the previous day, representing a 4.35% cut that is reshaping competition in Nigeria's downstream petroleum market.

The adjustment, announced by consortium marketers linked to the refinery, followed a decline in the European gasoline benchmark known as EBOB, which serves as a reference for the refinery's pricing model.

Industry sources also cited improved product availability and a narrowing price spread as factors behind the reduction.

Lagos depot prices fall

Data from Petroleumprice.ng showed that Lagos depots closed on Thursday at an average price of about N1,300 per litre.

By Friday, October 30, several operators had reduced their prices following Dangote's latest adjustment, with some cutting rates by as much as N40 per litre.

African Terminal, Integrated, Rainoil, Ardova and Nipco offered petrol at N1,260 per litre, while Aiteo recorded the lowest price at N1,255 per litre.

The six price quotes averaged N1,259.17 per litre on Friday, representing a decline of N40.83, or 3.14%, from Thursday's average.

What it means for marketers and consumers

The latest adjustment highlights Dangote Refinery's growing influence on wholesale petrol pricing in Nigeria.

As the refinery reviews its gantry prices, independent depot operators face increasing pressure to remain competitive and attract bulk buyers, who now have more options when comparing wholesale offers.

However, whether the reductions will translate into lower pump prices for motorists depends on several factors, including transportation costs from depots to filling stations and how quickly retailers pass the savings on to consumers.

Other marketers slash prices

Petrol depot prices declined across Lagos, Port Harcourt and Calabar, as several marketers adjusted their selling rates downwards.

The latest price data showed that most depots reviewed reduced their petrol prices, although the extent of the cuts varied across the three locations.

Depot owners cut diesel prices below Dangote’s new rate

Earlier, Legit.ng reported that Depot owners in Lagos have cut diesel prices below Dangote Petroleum Refinery’s new gantry rate of N1,840 per litre, less than 24 hours after the refinery announced a price increase.

The latest adjustments highlight intensifying competition among suppliers in Nigeria’s downstream petroleum market, with several depots offering Automotive Gas Oil (AGO), commonly known as diesel, at lower rates than the refinery.

The latest price changes put the identified depots’ rates between N5 and N15 per litre below Dangote Refinery’s revised gantry price.