Energy marketers in Nigeria have predicted another reduction in petrol prices in the coming days, citing the continued decline in global crude oil prices. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has linked recent fuel price changes to falling depot rates and the gradual clearance of higher-cost stock in circulation.
Chinedu Ukadike, the Public Relations Officer of IPMAN, in an exclusive interview with Legit.ng, expressed optimism about price relief for Nigerians. He explained that the drop in crude oil prices is already being reflected at the pump at the Dangote Refinery and depots.
Direct Link Between Crude Oil and Petrol Prices
Ukadike noted that the price of crude oil is directly tied to local petrol prices. He stated, "When there is a reduction in the international market, there will be a drop in petrol price. Domestic reduction is equivalent to the price of crude oil in the market." He added that once new supply is lifted at lower landing costs, Nigerians should expect another downward adjustment in pump prices.
He clarified that marketers consider the gantry price of petrol, logistics costs, and other operational expenses before setting pump prices. "Whatever is sold at the gantry price, we calculate our logistics. Next week or within the next two weeks, petrol price will fall further," Ukadike said.
Impact of Old Stock on Current Prices
The IPMAN official explained that many filling stations are yet to reduce prices below N1,300 per litre because they are still managing old stock purchased at higher rates. Immediate price cuts could lead to losses for marketers holding expensive inventory. "This announcement is enabling people who have old stocks to clear out their stocks, not only clearing out their stocks but also enabling them to prepare to take the fresh stocks," he added.
Ukadike noted that loading activities usually slow down whenever the Dangote Refinery announces a new price, allowing marketers time to adjust their stock before fresh supplies enter the market. "Once the Dangote refinery announces a new price, there is a serious pause in loading. It will enable people who just bought new products to see how they can clear the old stocks within a window of a day or two," he said.
Current Price Trends
Some marketers have already reduced petrol prices to around N1,200 per litre, with fuel selling between N1,220 and N1,250 per litre in parts of Lagos, including Apapa and Lekki. Ukadike also identified the cost of funds as another key factor affecting petrol pump prices, noting that financing expenses influence how quickly marketers adjust prices. "Marketers aside, logistics also consider the interest rate on the loans from banks to determine fuel prices," he said.
He added that petrol prices in northern Nigeria are expected to remain higher, ranging between N1,270 and N1,350 per litre, due to transportation and logistics costs. The IPMAN PRO stressed that further declines in petrol prices will depend on continued stability in crude oil prices and easing global geopolitical tensions.
Broader Market Impact
In related news, Dangote Refinery recently reduced the price of Automotive Gas Oil (diesel) at the gantry by N100 to N1,600, providing hope for a drop in transport, logistics, and manufacturing costs in Nigeria. Analysts said the cut is expected to fuel a new wave of price competition in the downstream market, with depot prices having been high recently. Diesel has sold for between N1,660 and N1,670 across major Lagos depots.
