New Petrol Prices Emerge at Filling Stations, Cheaper Than NNPC Rate
- Some petrol station operators, in a bid to attract more buyers, have once again reduced their pump prices below N865
- The new prices observed at various stations on Thursday are lower than the rates offered by NNPC Limited retail outlets
- There is growing price competition in the downstream sector as several private depots have also slashed prices around the Dangote Refinery
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Fuel stations are again adjusting their prices to lure customers as competition in the sector heats up.
A survey by Legit.ng revealed that new petrol pump prices offered by major filling stations are below the rate of N865 per litre.
Source: Getty Images
On Thursday, the Nigerian National Petroleum Company Limited (NNPCL) retail stations were dispensing fuel in Lagos at N865 per litre.
However, competitors like Ardova and Mobil sold at N860 and N855 per litre, respectively.
Lower prices were also observed at Cicilia filling station, where petrol was sold at ₦859 per litre, while First Royal sold at N855.
Here’s a snapshot of pump prices observed in Lagos on Thursday
- NNPC: ₦865
- MRS: ₦865
- Ardova: ₦860
- Mobil: ₦855
- Matrix: ₦865
- De Petroleum: ₦865
- Seaman Liquid: ₦865
- TotalEnergies: ₦860
- Fatgbems: ₦865
- Petrocam: ₦865
- Pinnacle: ₦855
- Cicilia: ₦859
- First Royal: ₦855
Why petrol prices drop?
The changes in petrol prices follow the drop in the international oil market, with benchmark prices reflecting a slowdown in demand and an oversupply squeeze.
On Wednesday, WTI crude traded at $63.95 per barrel (+1.11%), Brent crude at $67.81 (+0.88%), while Murban crude held at $71.97 (+1.55%).
Natural gas prices also rose to $2.807 (+3.31%), but the overall energy market sentiment remains bearish due to growing stockpiles and lacklustre consumption in key economies, Petroluemprice.ng reports.
Source: Getty Images
Depot prices drop
With 50% of Nigeria’s refined product consumption still imported, and Dangote Refinery sourcing about half of its crude feedstock externally, local petrol pricing remains tightly tied to international benchmarks.
A rise and drop in crude oil prices will always affect how much Nigerians pay for petrol, given there is no longer a subsidy.
Several depots have adjusted their prices to reflect the international markets. For example Dangote refinery is selling at N822 the same rate offered by MRS Tin Can: N822 per litre
Similarly, AA Rano and Aiteo depot have slashed their prices to N824 per litre
More price changes are expected at depots in the days ahead and will gradually reflect at filling stations.
Dangote refinery fuel distribution plan
Earlier, Legit.ng reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have expressed strong concerns over the decision by Dangote Refinery to venture into the direct distribution of fuel across the country.
The oil marketers warn that the move could cripple businesses and lead to massive job losses in Nigeria’s petroleum value chain.
The president of PETROAN spoke to Legit.ng and how the government can play a role.
Source: Legit.ng
