Private petroleum depots in Nigeria have reduced petrol prices by up to N35 per litre, intensifying competition in the downstream oil market and putting pressure on other suppliers to review their rates. The latest reductions bring some depot prices closer to Dangote Refinery's rate, which recently cut its petrol price by N50 per litre.
Depot Price Adjustments
According to data from PremiumPriceNG, several major depot operators have adjusted their prices downward. Pinnacle Depot now sells petrol at about N1,165 per litre, while AITEO and African Terminal have reduced prices to around N1,168 per litre. Sigmund recorded one of the sharpest reductions, cutting its price by N35 to N1,180 per litre.
These new depot rates could influence prices charged by independent marketers and, eventually, the cost motorists pay at filling stations nationwide. The development comes just days after Dangote Refinery reduced its petrol price by N50 per litre, triggering renewed competition among major suppliers.
Impact on Competition and Consumers
Dangote Refinery's latest price reduction has intensified competition, with private depot operators adjusting rates to remain attractive to marketers. The price war could provide relief for consumers if reductions are sustained and distributors pass savings to filling stations. Lower petrol prices could also ease transportation costs, particularly for commercial motorists and businesses reliant on road transport.
However, consumer benefits depend on logistics costs, marketers' margins, regional supply conditions, and other distribution expenses.
Global Oil Market Volatility
The Nigerian price cuts come despite renewed volatility in international crude oil markets. Recent data from Oilprice.com showed crude prices rising in early trading on Monday as uncertainty surrounding the Strait of Hormuz weighed on energy markets. As of 3:37 a.m. WAT, Brent crude traded at $84.37 per barrel (up 0.98%), while West Texas Intermediate stood at $78.76 (up 0.74%).
Iran has reportedly attached conditions to reopening the strategic waterway, complicating expectations of a quick return to normal shipping activity.
Potential Consumer Relief
The reduction in depot prices could eventually lower petrol prices for consumers if marketers pass savings through the supply chain. A sustained decline could provide relief to households and businesses grappling with high transportation and operating costs.
With Dangote Refinery and private depots competing aggressively on price, the downstream petroleum market could see further adjustments in the coming weeks. For consumers, the biggest benefit would be sustained reductions at filling stations rather than temporary depot-level cuts.
Legit.ng earlier reported that Dangote Refinery remains the cheapest place to buy petrol at N1,166 per litre, down from N1,215 previously. The latest depot price list shows PMS prices ranging from N1,166 to N1,182 per litre across listed locations. Dangote Refinery and Pinnacle are currently the lowest-priced suppliers, while Liquid Bulk and Matrix recorded the highest price of N1,182 per litre.
