Depot Owners Reduce Petrol Prices in Lagos, Calabar, Other Cities
- Petrol prices have dropped as the competition intensifies in Nigeria's downstream sector
- Wholesale Premium Motor Spirit prices averaged around ₦702 per litre in major cities
- Cautious buying hinted at further price reductions for consumers in the coming weeks
Petrol prices are decreasing across Nigeria as competition intensifies in the downstream petroleum sector, offering fresh relief to marketers and raising expectations of lower prices at the pump in the weeks ahead.
Findings show that petroleum product importers and depot operators slashed wholesale prices, with Premium Motor Spirit (PMS) now selling at an average of about ₦702 per litre at depots in Lagos and other cities.
Source: Getty Images
Similar price reductions were recorded in Calabar and other coastal supply corridors, reflecting a broad market reset rather than isolated adjustments.
According to data from PetroleumPriceNG, Nigeria’s downstream petroleum market closed the third full trading week of January 2026 on a softer footing.
Depot prices for PMS weakened across key locations, while Automotive Gas Oil (AGO) prices eased modestly following several downward reviews by Lagos-based depot operators.
What drove latest price drop in Nigeria?
Price movements between Monday, January 12, 2026, and Friday, January 16, 2026, were largely driven by domestic market dynamics rather than external shocks from the global crude oil market.
Industry data indicate that intensifying competition among depot owners, improving product availability, and selective repricing played a bigger role than international oil price movements.
With more products chasing the same pool of buyers, operators were forced to revise prices downward to retain loading volumes.
Market players also pointed to cautious buying behaviour by marketers, many of whom delayed large purchases in anticipation of further price drops.
This wait-and-see approach added pressure on depot owners to adjust prices quickly.
Market fundamentals keep Nigeria's fuel prices low
Broadly, depot prices remain moderately low due to favourable domestic supply conditions.
Improved evacuation from coastal depots, steady inflows from private refinery-linked volumes, and relatively smooth logistics combined to weaken wholesale pricing across major hubs.
Repeated price reviews by key depot operators, especially in Lagos, helped reset market expectations.
Once leading players adjusted their rates, competitors were compelled to defensively reprice existing inventories to avoid losing market share.
Analysts note that this pattern reflects a more competitive downstream market, where pricing power is increasingly determined by supply efficiency and turnaround speed rather than coordination.
Source: Getty Images
Mixed signals in Lagos PMS market
Despite the overall decline, PMS prices in Lagos showed mixed movements across depots.
Pinnacle continued to anchor the lower end of the market, reinforcing downward pressure on competing facilities.
However, some operators, including Shellplux and Nipco, implemented upward reviews during the week.
These adjustments were primarily attributed to inventory replacement costs, rather than a meaningful rebound in demand or a tightening of supply.
Overall market sentiment remained cautious, supported by ample product availability and limited urgency among buyers.
What depot price cuts mean for consumers
While depot price cuts do not immediately translate to lower pump prices, sustained reductions at the wholesale level typically filter down to retail outlets over time.
If current supply conditions and competitive pressures persist, consumers could see further easing of petrol prices across major cities.
For now, the downstream market appears firmly in a price-watch phase, with operators prioritising volume over margins as competition reshapes Nigeria’s fuel landscape.
Dangote Refinery: 43m litres of fuel/day
Legit.ng also reported that the Dangote Petroleum Refinery had dismissed reports that it shut down its petrol processing unit, stating that it had delivered 43.3 million litres of Premium Motor Spirit to the market in a single day.
Officials of the refinery said the volume loaded on January 3, 2026, alone was enough to meet more than half of Nigeria’s estimated daily petrol consumption, countering claims that production had been halted due to maintenance.
The clarification by Dangote on its petrol processing unit followed widespread reports that the large refinery had suspended operations, a claim that triggered sharp increases in ex-depot petrol prices across major fuel trading hubs.
Proofreading by Bruce Douglas, copy editor at Legit.ng.
Source: Legit.ng
