Lagos diesel (AGO) depot prices have converged for the first time since early December, marking a critical turning point in the pricing dynamics between the Dangote Petroleum Refinery and private depot operators.
Market data from January 16, 2026, shows AGO prices across major Lagos depots clustering tightly between ₦910 and ₦913 per litre, effectively erasing the price gap that had previously separated Dangote’s supply from independent operators.
Price War Narrows to Margins
Dangote Refinery currently offers AGO at an ex-depot price of ₦910 per litre. However, resellers lifting from the refinery now sell at ₦912, reflecting a ₦2 margin. In contrast, several private depots are selling AGO directly at ₦910–₦913, making them marginally cheaper for truck loading.
As a result, private depots have become more competitive on a delivered-cost basis, particularly for marketers focused on immediate price advantages.
Key AGO Prices — Lagos Depots (January 16, 2026)
- ₦910/L: Ibachem, Ibeto, Aipec
- ₦911/L: Obat, African Terminal, Gulf Treasure, Integrated, A.A. Rano
- ₦912/L: TMDK, Menj (Dangote-linked resale level)
- ₦913/L: Wosbab
This pricing structure places most private depots at or below Dangote-linked resale prices, effectively neutralising the refinery’s earlier pricing advantage.
How the Market Reached This Point
The convergence traces back to December 4, 2025, when Dangote Refinery sharply reviewed its AGO price from ₦950 to ₦910 per litre. That move triggered a gradual but steady response from private depot operators, who began cutting prices in stages throughout December and early January.
Until now, private depots had maintained a premium above Dangote’s ex-depot rate. January 16 marks the first time since that December price review that private depot prices have fully aligned with Dangote’s benchmark.
Earlier December Context
On December 4, Lagos AGO prices were still significantly higher across most private depots:
- ₦950/L: Menj, Wosbab, Chipet, TMDK, Ibachem, Pinnacle
- ₦942–₦945/L: Nipco, Duport
- ₦950.5/L: Dangote (pre-review level)
The subsequent decline underscores how aggressively the market adjusted to Dangote’s price reset.
Implications for Marketers
With price parity now established, sourcing decisions are shifting from refinery-versus-depot pricing to logistics efficiency, loading speed, and credit terms. For many marketers, private depots currently offer a slight cost edge, particularly where direct loading avoids reseller markups.
More broadly, the development confirms that Dangote’s pricing continues to act as the primary anchor for Nigeria’s downstream diesel market, with private operators increasingly forced to align or risk losing volumes.
