Retail petrol prices across Lagos fell below Dangote Refinery’s rate on Tuesday as the Nigerian National Petroleum Company (NNPC) and independent marketers slashed prices in a direct challenge to the refinery’s market dominance.
Al-Moruf Filling Station in Igando reduced its price to ₦865 per litre while MOJ and Eunice stations matched the rate. NNPC Retail adjusted its pump price to ₦870 per litre, below the ₦875 per litre currently charged at Dangote-supplied outlets.
AITEO depot revised its ex-depot price to ₦826 per litre, offering better margins to independent marketers and prompting an immediate shift in retail pricing across key areas in Lagos.
The reductions indicate a shift in control over price-setting mechanisms in Nigeria’s deregulated downstream sector.
Despite Dangote Refinery’s 650,000 bpd capacity and increased refining output, the refinery’s prices are being undercut at both depot and retail levels.
Industry data suggests independent marketers are consolidating purchasing volumes — with batches of up to 40,000 litres — to minimize cost per litre and remain competitive.
Depot operators are leveraging alternative sourcing models to maintain price advantage.
Dangote Refinery has responded by securing five million barrels of West Texas Intermediate (WTI) crude from the United States for July delivery, including 161,000 barrels daily.
The move is aimed at increasing output and adjusting pricing over time.
The ongoing adjustments confirm intensified competition in Nigeria’s fuel market. Independent players and NNPC are using aggressive pricing to capture volume and Dangote Refinery faces growing pressure to revise its commercial strategy or risk loss of retail share.
Further price fluctuations are expected in the coming weeks as international imports and local production volumes increase.
