Key points
- Petrol depot prices declined across major supply hubs, with no depot recording a price increase.
- Dangote Refinery retained the lowest ex-depot price in Lagos at ₦1,216 per litre, while several marketers announced fresh price cuts.
- Diesel prices also fell across key markets, reflecting improved product availability.
- Analysts attributed the trend to stronger competition and improved fuel supply.
Main story
Petrol depot prices declined across major supply centres on Wednesday as marketers implemented fresh price cuts, reflecting intensifying competition in Nigeria’s downstream petroleum market.
An analysis of mid-day depot prices showed that suppliers in Lagos, Warri, Calabar and Port Harcourt either reduced prices or maintained existing rates, with no depot increasing its ex-depot petrol price.
In Lagos, Dangote Petroleum Refinery retained its ex-depot petrol price at ₦1,216 per litre, the lowest among major suppliers. Pinnacle reduced its price by ₦2 to ₦1,216 per litre, matching Dangote’s rate.
MRS cut its price by ₦2 to ₦1,222 per litre, while Emadeb reduced its rate by ₦7 to ₦1,218 per litre. Other suppliers, including Aiteo, Nipco, Ascon, Shema and T-Time, maintained prices between ₦1,218 and ₦1,220 per litre.
In Warri, Bulk Strategic, Liquid Bulk, Masters, Matrix and Sigmund lowered petrol prices to about ₦1,245 per litre. Rain Oil recorded one of the largest reductions, cutting its price by ₦23 to ₦1,245 per litre, while Matrix reduced its price by ₦10 to the same level. TSL also lowered its rate by ₦6 to ₦1,244 per litre.
In Calabar, Northwest reduced its depot price by ₦15 to ₦1,235 per litre, while Mainland cut its rate by ₦10 to ₦1,240 per litre. Hong Petroleum lowered its price by ₦2 to ₦1,233 per litre, the lowest quoted in the area.
Similarly, in Port Harcourt, Matrix reduced its petrol price by ₦3 to ₦1,243 per litre, while Optima lowered its rate by ₦2 to ₦1,243 per litre. Rain Oil also cut its price by ₦23 to ₦1,245 per litre.
Diesel prices also recorded declines across several markets. In Lagos, Matrix reduced diesel by ₦55 to ₦1,645 per litre, while Aiteo cut its price by ₦15 to ₦1,630 per litre.
In Warri, Matrix lowered diesel prices by ₦70 to ₦1,650 per litre, while A.Y.M Shafa reduced its rate by ₦40 to the same level.
The issues
The latest price adjustments point to growing competition among fuel suppliers, driven by improved domestic supply and sustained participation by importers and independent marketers. While depot prices are falling, the extent of any reduction in retail pump prices will depend on transportation costs, operating expenses and marketers’ margins.
What’s being said
“The latest movement suggests that competitive pricing and improved product availability are increasingly shaping Nigeria’s downstream petroleum market.”
Bottom line
Lower depot prices for petrol and diesel signal stronger competition in the downstream market, although the impact on prices paid by consumers will depend on distribution and retail costs.
