New Petrol Prices Emerge at Depots, Lower Than Dangote Refinery’s Rate

• Filling stations in Nigeria may adjust their pump prices as depots rival Dangote Refinery with cheaper petrol
• The latest data shows that Dangote Refinery's prices are higher compared to what is offered at private depots
• As the biggest domestic supplier of petrol, Dangote Refinery might be forced to reduce prices to beat the competition

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Petrol prices in Nigeria are set to change again as competition between Dangote refinery and private depot owners intensifies.

New data shows that private depots are slashing their rates below that of the Dangote Petroleum Refinery.

New petrol prices in Nigeria

PetroleumPrice.ng reports that between June 23 and 27, major private depots in Lagos, including Aiteo, Nipco, and AIPEC, have cut their ex-depot rates for Premium Motor Spirit (PMS) to N870 and N874 per litre.

This is lower than the N880 rate offered by Dangote Petroleum refinery to marketers.

The ex-depot price is the cost at which fuel is sold to marketers before it reaches filling stations.

The price war extends beyond petrol. For Automotive Gas Oil (AGO), commonly known as diesel, major depots such as African Terminal, Ibachem, Menj, Mao, and Ibeto are maintaining stable prices at N1,000 per litre.

Dangote’s AGO remains higher at N1,023 per litre, with only Rainoil offering a price closer at N1,003.

In the Liquefied Petroleum Gas (LPG) segment, Dangote has also lost its pricing advantage.

Ardova and other depots are offering LPG at N890 per kilogram, the same rate as the Dangote refinery.

Filling stations may adjust petrol prices

The price changes observed at various depots mean that filling station owners will also try to buy from those offering lower prices.

Already, there is intense price competition, with some fuel stations selling at prices lower than those of the Nigerian National Petroleum Company Limited (NNPCL).

For instance, De Petroleum Filling Station in the Ikotun Igando area of Lagos is selling petrol at N920 per litre.

Ardova Filling Station in nearby Egbeda is also advertising petrol at N920 per litre, N5 lower than the prices quoted by other stations in the area, including NNPC.

Similarly, Cincia Oil Filling Station is offering petrol at N920 per litre.

The lowest petrol price was observed at First Royal Oil, advertising its petrol at N890 per litre.

MRS Oil Nigeria, one of the oil marketers lifting petrol from the Dangote refinery, is selling at N925 in Lagos.

In the South-West region, the price has been adjusted to N935 per litre. For the N945 in the North-West and North-Central, and N955 in the South-South, South-East, and North-East regions.

Dangote refinery to save Nigerians N1.7 trillion in fuel costs

Earlier, Legitng reported that Dangote Refinery plans to absorb over N1.07 trillion annually in fuel distribution costs by supplying petrol, diesel, and aviation fuel directly to marketers.

The company has invested N720 billion in 4,000 CNG-powered lorries and nationwide CNG stations to implement this cost-saving initiative.

This move is expected to reduce inflation, cut production costs, create over 15,000 jobs, and curb cross-border fuel smuggling.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng