Petroleum marketers have reduced petrol depot prices by as much as N24 per litre in Lagos, intensifying competition with the Dangote Petroleum Refinery and raising expectations of lower pump prices for Nigerian motorists. The reductions, recorded on Tuesday across major depots in Lagos, Port Harcourt, Calabar and Warri, follow a decline in international crude oil prices and increased competition among domestic refiners and importers.
Lagos Marketers Slash Petrol Prices to Rival Dangote
According to the latest depot price intelligence, Ascon, Integrated and Sahara reduced their petrol prices by N24 per litre, from N1,351 to N1,327. Pinnacle implemented a similar N24 reduction, bringing its price down from N1,350 to N1,326 per litre. MRS also joined the downward adjustment, cutting its price by N20 to N1,332 from N1,352.
Meanwhile, the Dangote Petroleum Refinery maintained its gantry price at N1,325 per litre, remaining below the revised prices of the listed Lagos competitors. The reductions narrowed the price gap between the refinery and competing depots, intensifying competition in the downstream petroleum market.
Petrol Prices Fall in Port Harcourt, Calabar and Warri
Outside Lagos, marketers implemented smaller price reductions. In Port Harcourt, Ascon and Integrated reduced their petrol prices by N5 each, from N1,820 to N1,815 per litre, while Ibeto maintained its price at N1,815. Calabar recorded further adjustments as Mainland reduced its price by N7 to N1,320, while Alkanes cut its price by N2 to N1,325. In Warri, Keonamex lowered its price by N3 to N1,327, while Nepal implemented a marginal N1 reduction to N1,329 per litre.
The adjustments indicate that the downward movement is spreading across major petroleum distribution hubs, although the scale varies considerably.
Diesel Prices Crash by N50 per Litre
The diesel market recorded even steeper reductions, potentially easing operating costs for transporters and businesses that depend on diesel-powered equipment. Matrix in Warri reduced its Automotive Gas Oil price by N50, from N2,050 to N2,000 per litre. In Port Harcourt, Masters lowered its diesel price by N35 to N1,900, while Prudent and Rain Oil in Warri implemented N10 reductions to N1,940 per litre.
An anonymous petroleum marketer said the latest reductions could encourage filling stations to review their pump prices as they purchase fresh supplies. However, retailers holding previously purchased stocks may delay adjustments to avoid losses. The marketer explained: "The extent of any reduction will also depend on transportation costs, operating expenses and retail margins. Consequently, the N20–N24 decline recorded at some Lagos depots should not be interpreted as an automatic N20–N24 reduction at the pump."
The marketer added that sustained reductions in energy costs could provide relief to businesses and consumers. Meanwhile, West Texas Intermediate declined by $1.03 to $91.34 per barrel, while Brent crude slipped by $0.29 to $100.
FG Moves to Crash Petrol Prices
Despite the downward trend, fluctuations in crude oil prices, exchange rates and distribution costs could determine whether further petrol price reductions materialise. The Federal Government's planned meeting with refiners, depot owners, marketers and retailers is to address rising petrol prices nationwide. The engagement follows Dangote Refinery's decision to reduce its petrol gantry price by N25 to N1,325 per litre.
Petrol prices have climbed to between N1,395 and N1,450 per litre in Abuja and other parts of Nigeria. The outcome of the meeting could influence pump prices and determine whether consumers receive relief from rising transport and operating costs.
