- Petroleum marketers in Nigeria lowered petrol prices due to the falling landing costs of imported fuel
- Major Lagos depots have reduced petrol prices amid growing competition and changing market dynamics
- Diesel prices have also seen substantial drops, reflecting an increasingly competitive petroleum market in Nigeria
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Petroleum marketers across Nigeria are cutting depot prices of Premium Motor Spirit (PMS), popularly known as petrol, as the landing cost of imported fuel falls again, raising fresh hopes of lower pump prices for motorists.
Latest market data showed that several major depots in Lagos reduced their ex-depot prices by between N1 and N18 per litre, reflecting growing competition among suppliers and changing dynamics in Nigeria’s downstream petroleum market.
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The decline comes as increased domestic refining capacity and lower global crude oil prices continue to reshape the country’s fuel pricing structure.
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Rainoil leads price cuts in Lagos
Among Lagos depots, Rainoil recorded the biggest reduction, slashing its petrol price by N18 per litre from N1,180 to N1,162.
A.A. Rano also cut its price from N1,165 to N1,161 per litre, while AIPEC and Bono reduced theirs from N1,165 to N1,160 per litre. NIPCO adjusted its PMS price downward from N1,165 to N1,161 per litre, while AITEO trimmed its rate from N1,161 to N1,160.
Other major terminals followed the same trend. Masters Energy reduced petrol prices from N1,203 to N1,197 per litre, while Matrix lowered its rate from N1,205 to N1,197. Sigmund and TSL also cut prices from N1,200 to N1,195 per litre.
In contrast, the Dangote Refinery maintained relative price stability, with its Lagos PMS rate rising marginally by N1 from N1,175 to N1,176 per litre, according to a report by Vanguard.
Regional depots show mixed trends
While Lagos witnessed widespread price reductions, some depots outside the commercial hub recorded increases, highlighting the impact of regional supply and logistics costs.
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In Port Harcourt, African Terminal raised its PMS price from N1,495 to N1,505 per litre, while Duport also increased its rate from N1,490 to N1,505. Gulf Treasure and T.Time were both quoted at N1,505 per litre.
However, Dangote’s Port Harcourt terminal bucked the trend, trimming its price slightly from N1,501 to N1,500 per litre.
In Calabar, petrol prices edged higher as the Mainland depot increased its PMS price from N1,187 to N1,190 per litre, while Northwest raised its rate from N1,190 to N1,195.
Imported petrol now cheaper than local supply
The latest depot price reductions come amid a sharp decline in the landing cost of imported petrol, which has once again fallen below the Dangote Refinery’s ex-gantry price.
This is the second time in June that imported fuel has become cheaper than locally refined supplies, largely due to declining global crude oil prices.
Industry analysts say the development is linked to easing geopolitical tensions following the fragile ceasefire between the United States and Iran, which has reduced fears of supply disruptions along the Strait of Hormuz, one of the world’s most strategic oil shipping routes.
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Diesel prices record bigger declines
The diesel market experienced even steeper reductions.
In Port Harcourt, Matrix slashed Automotive Gas Oil (AGO) prices from N1,630 to N1,560 per litre, representing a N70 drop. Sigmund also reduced diesel prices by N68, from N1,628 to N1,560 per litre.
Similar reductions were recorded in Lagos, reinforcing the downward trend in petroleum product prices.
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Chief Executive Officer of Petroleumprice.com, Olatide Jeremiah, said the latest adjustments underscore the increasingly competitive nature of Nigeria’s petroleum market, Vanguard reports.
“With more domestic supply entering the market, especially from major refining facilities, marketers are expected to continue reviewing depot prices in response to changing supply conditions,” he said.
He added that consumers may begin to enjoy lower pump prices if depot reductions are sustained and marketers successfully absorb transportation and operating costs.
Marketers expect a further drop in fuel prices
Legit.ng earlier reported that marketers are expecting a further drop in petrol prices across Nigeria, as marketers anticipate adjustments linked to declining global crude oil rates.
As consumers braced for relief at the pump, the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that this shift could significantly ease financial pressures for many struggling households amidst ongoing economic challenges.
Source: Legit.ng