Private Depot Owners Slash Fuel Prices Despite High Global Crude Costs
Private depot owners across Nigeria have begun reducing fuel prices even as global crude oil benchmarks remain elevated, intensifying competition in the downstream petroleum market.
Brent crude and West Texas Intermediate (WTI) are currently trading between $102 and $107 per barrel, a level that typically puts upward pressure on refined product prices worldwide. Despite this, Nigerian depot operators are adjusting prices downward, reflecting shifting local supply dynamics and competition within the domestic market.
The development comes at a time when Nigeria’s downstream sector is still adjusting to improved local refining capacity, particularly with the Dangote Refinery now in operation. However, depot pricing continues to reflect a blend of international crude trends, foreign exchange realities, and domestic supply competition.
Diesel prices fall across major depots
Data from DepotData shows a clear downward trend in Automotive Gas Oil (diesel) prices across key depots as of May 12, 2026, particularly in Lagos, Warri, and Port Harcourt.
In Lagos, depots operated by Rain Oil Limited and AA Rano reduced diesel prices by N50 per litre, bringing rates down from N1,890 to N1,840. The move signals aggressive price competition in one of the country’s busiest fuel distribution hubs.
Warri also recorded declines, with First Fortune cutting prices by N33 per litre, from N1,888 to N1,855. Danmarna followed a similar trend, reducing its price from N1,890 to N1,855, representing a drop of N35 per litre.
In Port Harcourt, price adjustments were more moderate. Bulk Strategic reduced diesel prices by N10 per litre, from N1,905 to N1,895, while Sigmund brought its rate down slightly from N1,910 to N1,890.
Competition, not crude trends, driving prices
Industry analysts suggest the latest price movements are being driven more by local competition and supply availability than by international crude oil fluctuations.
With multiple depots adjusting prices to attract buyers, marketers are benefiting from short-term relief in diesel costs even as global oil markets remain relatively high.
The trend highlights how Nigeria’s fuel pricing structure is increasingly influenced by domestic market dynamics, particularly competition among depot owners, logistics considerations, and improving supply from local refining sources.
