Petrol marketers across Lagos, Warri, and Calabar depot slowed their purchases on Monday, following signs of possible price drops from Dangote Refinery. The day’s transactions were minimal, with several depots adjusting their rates downward in anticipation of new supply and pricing strategies.
Lagos Depots Sell PMS at ₦860
In Lagos, Premium Motor Spirit (PMS) was sold at ₦860 per litre at Aiteo, Integrated, and Menj depots. Despite the availability of product, marketer activity was low, as many held off loading due to uncertainties around Dangote Refinery’s pricing.
“Dangote didn’t fix a price today, so lifting was low. People are waiting to see if he drops it,” a depot marketer explained.
This indecision affected depot turnover, with sources confirming that trading was “quite scanty” throughout the day. Some depots reportedly paused pricing in response to fears that Dangote could adjust downward due to growing open-plant supply.
Warri Depots Slightly Higher
At the Warri axis, Matrix depot sold PMS at ₦880/litre, while A&E depot offered at ₦879/litre. Here too, marketers approached with caution, opting to delay purchases until clearer signals emerged from Dangote.
“There’s uncertainty. If Dangote cuts his rate, these depots will have to follow. Everyone is waiting,” said one marketer familiar with the area’s operations.
Calabar Records ₦890 at Fynefield
In Calabar, Fynefield and mainland depot maintained the highest observed rate at ₦890/litre. The depot saw slower movement as market watchers noted that the cost disparity with Lagos and Warri could influence future demand.
Dangote’s Price Silence Fuels Market Caution
The day’s cautious tone was largely driven by Dangote Refinery’s decision not to fix a depot price. This hesitation has become a major factor in how other market players position their rates, especially as the refinery continues to hold significant sway in Nigeria’s downstream space.
Private Depots Already Undercutting Dangote
The broader backdrop to Monday’s quiet market can be traced to recent pricing developments. Between June 23rd and 27th, private depots such as Aiteo, Nipco, and Aipec began undercutting Dangote by selling PMS at ₦870–₦874/litre, compared to Dangote’s ₦880/litre.
The trend extended to diesel (AGO), where Dangote’s ₦1023/litre price was notably higher than the ₦1000/litre average across major private terminals. In the LPG segment, Dangote also lost its edge, as Ardova and other players matched his ₦890/kg rate.
This competitive push is forcing Dangote to reconsider pricing. Industry insiders say a price drop may be imminent, noting that “there are strong indications that Dangote will crash his prices today,” as pressure mounts from cheaper alternatives, but for now industry watchers continue to observe as to when the refinery will drop prices.
Looking Ahead
As July approaches, traders and depot owners expect greater clarity. Many believe Dangote’s pricing decisions in the coming days could shape broader market behaviour — and potentially influence pump prices nationwide.
For now, marketers remain cautious, unwilling to stock up at current prices in a market where the biggest player is yet to move.
