Petrol Depot Prices Drop To ₦880.5 Per Litre

 The average price of Premium Motor Spirit (petrol) at private depots and the Dangote Refinery dropped slightly on Tuesday to ₦880.5 per litre, down from ₦881.5, as competition among suppliers in the downstream sector intensified.

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Major private depot operators, including Matrix, A.Y.M. Shafa, and Sigmund Zamson, operating mainly in Warri, Delta State, and Calabar, Cross River State, reduced their ex-depot price to ₦889 per litre from ₦890.

Similarly, the Dangote Petroleum Refinery adjusted its gantry price to ₦872 per litre, a ₦1 reduction from its previous rate of ₦873 per litre, while Pinnacle Oil and Gas maintained its price at ₦872 per litre.

The development follows growing price competition among suppliers as deregulation continues to reshape the market structure.

The Major Energies Marketers Association of Nigeria (MEMAN) had last week placed the landing cost of petrol at ₦829.77 per litre, reflecting a 5.69% decrease compared to the Dangote Refinery’s previous gantry rate of ₦877 per litre.

However, despite the downward review at depots, retail prices at filling stations in Lagos, including MRS, Ardova, and NNPC Limited outlets, still ranged between ₦920 and ₦922 per litre, showing that the effect of the price cut was yet to be felt by consumers.

According to Vanguard, the slow response at the pump to foreign exchange challenges has been attributed to the naira trading at ₦1,443.77 per dollar on the black market as of Tuesday.

In its latest Energy Bulletin, published on its website, MEMAN explained that the price changes were influenced by fluctuations in the Brent crude benchmark, which currently stands at $67.02 per barrel.

MEMAN stated, “The average 30-day report for PMS stood at ₦829.77 per litre, while the spot prices were ₦815.38 (ASPM) and ₦815.40 (NPSC-NOJ) per litre.

“Diesel (AGO) averaged ₦974.50 per litre, while Aviation Turbine Kerosene (ATK) recorded ₦962.53 per litre over the same period.”

Deregulation Driving Market Competition

Reacting to the development, the National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, in an interview with Vanguard, said the price adjustments reflect the dynamics of a deregulated market.

Obasi said, “The downstream sector has been deregulated, and competition should be expected. It is expected that competition will present more options for consumers in the domestic market.”