Private depot owners have undercut marketers linked to Dangote, slashing Premium Motor Spirit (PMS) prices to levels below the prevailing rate of N1,127 per litre set by Dangote Refinery. This move intensifies competition in Nigeria’s downstream petroleum sector, as independent depots respond quickly to market changes.
Petrol Price Falls at Depots
According to Petroleumprice.ng, on Thursday, June 25, Aiteo and MRS Tincan were offering PMS at N1,125 per litre, while Bono, Quest, and African Terminal sold at N1,126 per litre. These reductions represent another move by depot operators to compete for market share as suppliers continue adjusting prices in response to changing conditions.
This is not unprecedented; in the past week, several independent depot owners have also reduced their petrol and diesel prices below prevailing Dangote rates. Market stakeholders say these adjustments are a direct response to shifting dynamics in the wholesale petroleum market, as various suppliers strive to attract and retain bulk buyers.
Why Are Prices Changing?
Experts attribute these fluctuations to the deregulation of Nigeria’s downstream petroleum sector. The ability for operators to adjust prices freely, taking into account supply, demand, and competition, means market forces have an evident impact. While the current price gap between Dangote-linked marketers and independent depots is small, repeated reductions could influence future market trends.
Retailers and consumers hope that reductions at the depot level will translate into lower petrol prices at filling stations nationwide. However, industry observers note that pump prices depend on additional factors, including logistics costs, dealer margins, and operating expenses.
Market Outlook
With competition increasing among refiners, depot owners, and marketers, Nigeria’s downstream petroleum sector is expected to remain highly price-sensitive. Analysts believe operators will continue adjusting prices as they respond to market forces, foreign exchange movements, global crude trends, and domestic demand.
Earlier, Legit.ng reported that NNPC filling stations in Lagos adjusted petrol pump prices downward, bringing relief to motorists. The changes came days after Dangote Petroleum Refinery announced a new petrol price.
