Connect with us

Petrol

Petrol Depot Prices Fall Amid Dangote Refinery’s N890 Per Litre Adjustment

Published

on

stakeholders

The cost of Premium Motor Spirit (PMS) at private depots declined by N27 from N952 per litre to N890 on Monday.

The price adjustment follows the Dangote Petroleum Refinery’s decision to lower its ex-depot price of petrol from N950 to N890 per litre.

Depot operators across the country swiftly adjusted their pricing structures to reflect the new competitive landscape. Nipco Depot reduced its rate to N935 per litre from N952, while Chipet Depot lowered its price to N935 from N945.

Similarly, Aiteo Depot slashed its selling price to N925 from N942, and Wosbab Depot reduced its rate to N930 from N947. Rain Oil Depot made a comparable adjustment, selling at N935 per litre, down from N947 last Friday.

In Warri, Matrix revised its petrol price to N960 per litre, down from N970, while AYM Shafa also cut its price from N970 to N960.

In Calabar, Zone 4 Depot reduced its price by N8 to N950, while Alkanes and Northwest depots now sell at N949 and N950 per litre, respectively.

Despite the significant drop in ex-depot prices, petroleum marketers who had purchased stock at higher costs before the adjustment now face substantial losses.

Industry sources revealed that some marketers who secured supplies just hours before the Dangote Refinery’s price cut could be forced to sell at a loss, accumulating debts running into millions of naira.

Reacting to the situation, oil and gas expert Olatide Jeremiah noted that the decline in depot prices was inevitable, given Dangote Refinery’s increasing influence in the market.

“Dangote refinery’s reduction of petrol to 890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in refining and gantry loading has earned him the market leader in the downstream sector. The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through reduction of fuel at the pump,” he said.

Despite the downward adjustment in depot prices, retail pump prices remain unchanged, raising concerns about delayed price transmission to consumers. Jeremiah urged the regulatory authorities to ensure that the fall in depot prices translates into lower pump prices at filling stations across the country.

“The regulatory authority must ensure that filling stations reflect these depot price reductions immediately at the pump,” he added.

Market analysts suggest that if Dangote Refinery maintains its competitive pricing strategy, further reductions in depot prices could follow, ultimately influencing nationwide petrol affordability.

However, the immediate financial strain on marketers who bought at previous high prices could slow down price adjustments at the consumer level.

As competition intensifies in the petroleum sector, stakeholders anticipate further market shifts in the coming weeks, with potential downward adjustments in pump prices if depot price trends persist.

The development signals a new era of pricing competition in the Nigerian petroleum industry, driven by local refining capacity and supply chain realignments.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments
Advertisement
Advertisement
Advertisement