Six private depot operators in Nigeria have reduced their petrol prices, intensifying competition in the downstream petroleum market and bringing their rates closer to the Dangote Refinery's price of N1,165 per litre. This move follows the refinery's recent N50 price cut and is expected to provide relief for motorists if lower depot prices translate to cheaper fuel at filling stations.
Dangote's Price Cut Triggers Fresh Competition
The development comes just 48 hours after the 700,000-barrel-per-day Dangote Refinery announced a N50 reduction in the prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). The price cut has sparked a fresh battle for market share among major petroleum product suppliers, with the Lekki-based refinery now offering petrol at N1,165 per litre.
This pressure has forced independent depot operators to review their own prices to remain competitive. The latest adjustments follow an earlier prediction that Dangote's reduction could trigger further changes across the downstream sector.
Six Depots Move Closer to Dangote's Rate
Among the operators that have reduced their petrol prices are Pivot, selling at N1,179 per litre, while Bulk Strategic and Integrated have adjusted their rates to N1,180 per litre. NIPCO Lagos has gone lower, offering petrol at N1,168 per litre, just N3 above Dangote Refinery's current rate.
These adjustments indicate that depot operators are increasingly feeling the pressure to match the refinery's competitive pricing as buyers become more cost-sensitive. However, not every operator has followed the downward trend; Soroman increased its PMS price by N22, moving from N1,182 to N1,200 per litre.
More Petrol Price Cuts Could Be Coming
Industry experts believe the latest reductions may not be the end of the price battle. They expect additional cuts as more vessels carrying petroleum products arrive at Nigerian ports, potentially increasing supply and putting further pressure on wholesale prices.
The global crude oil market is also adding to the pressure, with benchmark prices falling significantly from recent highs. Brent crude was reported at $82.60 per barrel, while WTI stood at $77.59 and Murban at $81.10.
Competition Could Benefit Motorists
Although most of the depot prices remain slightly above Dangote Refinery's N1,165 rate, industry watchers say operators are adjusting to prevent customers from switching suppliers. They also expect some depots to eventually cut prices below Dangote's rate, as operators previously did in the diesel market.
For Nigerian motorists, the unfolding competition could become significant if the wholesale price reductions are passed down to filling stations, potentially bringing further relief at the pump. Legit.ng earlier reported that Dangote Refinery and Pinnacle are selling petrol at the lowest rate of N1,166 per litre among various depots.
As the fuel distribution landscape evolves, Dangote's initiative to deliver petrol without charge to marketers in six states marks a pivotal move aimed at enhancing accessibility and affordability across Nigeria.
