Lagos-based private depots are selling Automotive Gas Oil (AGO), also known as diesel, at prices below Dangote Refinery’s gantry rate, highlighting growing competition among fuel suppliers.
Dangote Refinery increased its AGO gantry price by N40 to N1,840 per litre, effective October 28, 2026, from N1,800 per litre.
However, prices at private depots in Lagos range from N1,820 to N1,835 per litre, with Duport and Ibeto selling at N1,820, African Terminal and Integrated at N1,830, and Menj at N1,835.
In Warri, the product sells at N1,890 per litre, representing a N70 premium over the lowest price in Lagos.
Market figures show that the lowest Lagos depot price is N20 below Dangote Refinery’s current gantry rate.
The pricing differences reflect competition among independent depots, which determine their rates based on individual cost structures, including product landing costs, storage expenses, foreign exchange rates and sales targets.
Unlike Dangote Refinery’s pricing and lifting arrangements, private depots in Lagos operate independently, allowing them to adjust prices according to their costs and market conditions.
Under Dangote Refinery’s arrangement, marketers are required to provide bank guarantees and lift products within stipulated periods, with possible forfeiture of guarantees and sanctions on future allocations for failure to meet the conditions.
READ ALSO: Dangote Refinery Raises Diesel Price to ₦1,800 per Litre
The arrangement has contributed to distress selling of Premium Motor Spirit (PMS) at the refinery’s gantry, where some marketers are reportedly selling at N1,290 per litre to avoid losing their bank guarantees.
However, the current AGO price competition among Lagos private depots is not linked to similar pressure, as they do not operate under a centralised bank guarantee and allocation sanction system.
The market assessment attributed the price differences largely to competition for sales volumes and access to available trucks.
With more than 15 active AGO storage facilities in Lagos competing for the same trucking market, some depots are using price reductions of between N10 and N20 per litre to attract buyers.
Duport and Ibeto, for instance, are selling at N1,820 per litre, while Menj is maintaining its price at N1,835 to protect its margins while remaining competitive.
The higher price in Warri was attributed to logistics costs, including vessel expenses associated with the Warri-Escravos route.
The assessment also cautioned against attributing the lower prices to old stock, noting that available data did not establish such a link.
International market indicators showed Brent crude at $114.10 per barrel, down 1.1 per cent, while West Texas Intermediate (WTI) traded at $101.45 per barrel. Platts EN590 was quoted at $730.64 per metric tonne.
In the foreign exchange market, the Nigerian Foreign Exchange Market (NFEM) opened at N1,346.05 to the dollar, while the Central Bank of Nigeria’s published rate stood at N1,347.03. The parallel market traded between N1,385 and N1,390.
Historical figures from the Major Energies Marketers Association of Nigeria (MEMAN) put AGO landing cost at N1,878.74 per litre on October 8, compared with Dangote Refinery’s former gantry price of N1,800 per litre, effective October 10.
The comparison showed that the historical landing cost was N78.74 above the refinery’s former price, illustrating the potential cost advantage of locally refined diesel over imported supplies at the time.
The market assessment said Lagos private depots’ ability to sell below Dangote Refinery demonstrated that the market was not controlled by a single supplier, but influenced by competition among domestic refiners, private depots and imported products.
It added that price leadership could change depending on the timing of imported cargoes and movements in replacement costs.
The assessment advised diesel buyers in Lagos to take advantage of prices between N1,820 and N1,830 per litre, while warning that the current rates might not represent a lasting price floor.
It also urged depot operators to avoid unnecessary price cuts, noting that any escalation of risks around the Strait of Hormuz could increase shipping and replacement costs.
