Petrol Prices Fall as Filling Stations Begin Cuts, Depots Undercut Dangote Rates
- Nigerians see potential relief at the pumps as petrol prices begin to drop nationwide
- Dangote Petroleum Refinery leads price cuts with significant reductions across fuels
- Industry experts caution that price reductions will be gradual to protect marketers from losses
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerians may finally be getting some relief at the pumps as filling stations and private depots begin lowering petrol prices following the recent decline in global crude oil prices.
The latest reductions, triggered by easing tensions in the Middle East, have sparked hopes that fuel prices could continue to fall in the coming weeks.
Source: Getty Images
However, industry players caution that the reductions will happen gradually to protect marketers who purchased fuel at much higher rates during the recent price surge.
Dangote leads fresh round of price cuts
The recent shift in the market was spearheaded by the Dangote Petroleum Refinery, which reduced its petrol gantry price by N75 per litre, bringing the rate down from N1,250 to N1,175 per litre.
The refinery also slashed diesel and aviation fuel prices by N100 per litre each. Diesel was reduced from N1,700 to N1,600 per litre, while aviation fuel dropped from N1,550 to N1,450 per litre.
The adjustments followed a sharp decline in crude oil prices, which had surged during the United States-Iran tensions before retreating after a ceasefire agreement eased fears of supply disruptions.
Private depots move below Dangote's price
Competition in the downstream sector intensified as some private depot operators quickly adjusted their prices to remain attractive to marketers.
According to industry data, several depots lowered petrol prices to around N1,180 per litre, while average diesel prices across Lagos depots, including African Terminal, Sahara, Ibeto and Duport, also declined significantly.
The aggressive pricing by depots has created expectations that retailers across the country will soon follow suit, giving motorists more affordable options at filling stations.
Why filling stations are yet to slash prices aggressively
Despite the reductions at depots, many filling stations are still selling petrol at around N1,280 per litre.
Marketers explain that most retail outlets still have old stock purchased at higher prices. Selling significantly below cost could result in substantial losses, making them cautious about implementing immediate price cuts.
Some stations have, however, reduced their pump prices by around N10 per litre, with expectations of additional adjustments as cheaper supplies enter the market.
IPMAN explains the gradual price reduction strategy
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says Dangote is intentionally adopting a measured approach to price reductions.
IPMAN spokesman, Chinedu Ukadike, noted that a sudden crash in petrol prices could hurt marketers holding expensive inventory.
According to him, the refinery is balancing affordability for consumers with the need to prevent heavy financial losses across the fuel distribution chain.
He assured Nigerians that as crude oil prices continue to stabilise, local fuel prices will increasingly reflect the lower cost of crude in the international market.
More relief could be on the way
Industry insiders say the market is entering a downward cycle, with marketers becoming increasingly cautious about buying fresh stock at current prices.
A source within the Dangote Group disclosed that the refinery is still processing crude purchased at elevated prices during the geopolitical crisis, explaining why price cuts may not yet fully reflect the recent plunge in crude prices.
Source: Facebook
Nevertheless, optimism remains high that petrol prices could fall further in the weeks ahead.
If crude oil prices remain stable and depots sustain their competitive pricing, millions of Nigerians may soon enjoy cheaper petrol, diesel and aviation fuel, bringing much-needed relief to households and businesses grappling with high transportation and energy costs.
Petrol price set to crash to N1,200/litre
Legit.ng earlier reported that petrol prices across Nigeria could soon decline to around N1,200 per litre following a fresh reduction in ex-depot prices by the Dangote Petroleum Refinery, according to industry marketers.
The refinery recently lowered its gantry price for Premium Motor Spirit (PMS) by N75 per litre, reducing it from N1,250 to N1,175.
The adjustment comes as global crude oil prices continue to fall after a peace agreement between the United States and Iran eased tensions in the Middle East.
Source: Legit.ng
