Competition: Depots Cut Petrol Prices Below Dangote’s N1,127 per Litre
- The fight for market share in Nigeria’s downstream petroleum space intensified again
- The price of petrol sold at private depot owners is now below what Dangote sells
- Dangote refinery recently reduced its price to reflect changes in the global crude oil market
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.
Private depot owners have undercut marketers linked to Dangote, slashing Premium Motor Spirit (PMS) prices to levels below the prevailing rate.
Dangote is currently selling petrol at around N1,127 per litre following a recent adjustment from the refinery.
Source: UGC
Petrol price falls at depots
Petroleumprice.ng reports that independent depots quickly responded to Dangote refinery changes with lower rates, intensifying competition across the wholesale market.
On Thursday, June 25, Aiteo and MRS Tincan were offering PMS at N1,125 per litre, while Bono, Quest, and African Terminal were selling at N1,126 per litre.
The latest reductions represent another move by depot operators to compete for market share as suppliers continue to adjust prices in response to changing market conditions.
This move by independent depot owners to price products below their Dangote-linked rivals is not unprecedented.
In the past week, several independent depot owners have also reduced their petrol and diesel prices to levels below prevailing Dangote rates.
Market stakeholders say these price adjustments are a direct response to the shifting dynamics in the wholesale petroleum market as various suppliers strive to remain competitive.
Marketers are constantly monitoring market conditions to ensure they attract and retain bulk buyers.
This increasing competition comes at a time when Dangote Refinery is playing a more significant role in supplying the country with refined fuel.
Why are prices changing?
Experts attribute these fluctuations to the deregulation of Nigeria’s downstream petroleum sector.
The ability for operators to adjust prices freely, taking into account supply, demand, and competition, means market forces have an evident impact.
While the current price gap between Dangote-linked marketers and independent depots is small, repeated price reductions could influence future market trends.
Source: Getty Images
Retailers and consumers will be hoping that the reductions at the depot level will translate into lower petrol prices at filling stations nationwide.
Industry observers note that pump prices depend on additional factors, including logistics costs, dealer margins, and operating expenses.
With competition increasing among refiners, depot owners, and marketers, Nigeria’s downstream petroleum sector is expected to remain highly price-sensitive.
Analysts believe operators will continue adjusting prices as they respond to market forces, foreign exchange movements, global crude trends, and domestic demand.
NNPC filling stations slash petrol pump price
Earlier, Legit.ng reported that Petrol prices at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Limited) in Lagos have been adjusted downward again, bringing relief to motorists amid fluctuating fuel costs.
Petrol attendants at NNPC filling station at Alfred Rewane Road, Ikeja, confirmed the new price.
The changes came days after Dangote Petroleum Refinery announced a new petrol price.
Source: Legit.ng
