Filling stations in parts of Lagos and Ogun states have begun reducing the pump price of premium motor spirit (petrol) following the recent cut in the gantry price by Dangote Petroleum Refinery. The price adjustment responds to lower global crude oil prices after an agreement between Iran and the United States.
Dangote Refinery Cuts Ex-Depot Price by N75
With an N75 reduction to its ex-depot price, petrol is now sold by Dangote refinery at N1,175 per litre, down from the previous N1,250 per litre. This reduction has triggered a fresh wave of price cuts at retail filling stations in the South-West region.
According to reports, at the SGR filling station in Mowe, Ogun state, a litre of petrol sells for N1,199 – the lowest price encountered during a survey. NIPCO, SAO, AP, and MRS filling stations dispense a litre at N1,205 per litre, while Mobil petrol stations sell at N1,220 per litre. At Heyden filling station in Iperu, a litre went for N1,285 per litre. Other filling stations, including NNPC Retail outlets in Ogun, are selling petrol at N1,245 per litre.
IPMAN Explains Price Disparity
Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), told Legit.ng 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. He explained that immediate price cuts could lead to losses for marketers holding expensive inventory.
Ukadike said: “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. 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 added that once new products enter circulation, pricing adjustments will naturally follow. 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.
Private Depots Also Slash Prices
Private depots in Nigeria have followed Dangote Petroleum Refinery in lowering petrol prices. The price cuts by operators range between N1 and N22 per litre, depending on location and volume. This move has fuelled increased competition in the downstream oil industry for customers. The reduction is attributed to lower global crude oil prices and the need to remain competitive in the domestic market.
