By Muhammad Mamman
Private depots in Lagos are now selling diesel at prices below those of the Dangote Refinery, intensifying competition in Nigeria’s downstream oil market.
Over the past week, diesel prices have fallen by nearly 3%, from ₦985 to ₦958 per litre. As of Wednesday, 8 October 2025, depots including TTIME, MENJ, GULF TREASURE, and DUPORT were offering Automotive Gas Oil (AGO) at ₦958 per litre — slightly under Dangote’s ex-depot rate of ₦960.
Industry analysts attribute the decline to oversupply and waning demand, driven by a growing shift towards alternative energy sources such as solar and compressed natural gas (CNG). With over 40 depots reportedly holding surplus diesel, marketers are slashing prices to clear inventory.
“Most depots are struggling to sell,” said a senior marketer in Apapa. “Tanks are full, vessels are discharging, and buyers are waiting for further price cuts. The only way to move products now is to undercut the big players.”
Experts say the increased competition could further push down prices, offering relief to consumers, especially transport operators and manufacturers. However, they warn that prolonged low margins could strain smaller marketers already grappling with high operational costs.
