Six Depots Crash Petrol Prices to Compete With Dangote Refinery, New Rates Emerge Nationwide
- Six private depot operators slash petrol prices, intensifying competition in Nigeria's downstream petroleum market
- Prices now closer to Dangote Refinery's N1,165 per litre after its recent N50 reduction
- Experts anticipate further price cuts as supply increases and global crude oil prices fall
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s downstream petroleum market is heating up as six private depot operators cut their petrol prices, bringing their rates closer to the price offered by the Dangote Refinery.
The latest reductions are expected to intensify competition among fuel suppliers and could provide some relief for motorists and businesses if lower depot prices eventually translate into cheaper petrol at filling stations.
Source: UGC
Dangote’s N50 price cut triggers fresh competition
The development comes just 48 hours after the 700,000-barrel-per-day Dangote Refinery announced a N50 reduction in the prices of Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel.
The price reduction has triggered a fresh battle for market share among major petroleum product suppliers.
The Lekki-based refinery is currently offering petrol at N1,165 per litre, putting pressure on independent depot operators to review their own prices to remain competitive.
The latest move follows an earlier prediction by Legit.ng that Dangote’s price reduction could trigger further adjustments across the downstream petroleum market.
Six depots move closer to Dangote’s rate
Among the operators that have reduced their petrol prices are Pivot, which is selling at N1,179 per litre, while Bulk Strategic and Integrated have adjusted their rates to N1,180 per litre.
NIPCO Lagos has gone lower, offering petrol at N1,168 per litre, just N3 above Dangote Refinery’s current rate.
The adjustments indicate that depot operators are increasingly feeling the pressure to match the refinery’s competitive pricing as buyers become more sensitive to cost.
However, not every operator has followed the downward trend.
Soroman increased its PMS price by N22, moving from N1,182 to N1,200 per litre.
More petrol price cuts could be coming
Industry experts believe the latest reductions may not be the end of the price battle.
They expect additional cuts as more vessels carrying petroleum products arrive at Nigerian ports, potentially increasing supply and putting further pressure on wholesale prices.
The global crude oil market is also adding to the pressure, with benchmark prices falling significantly from recent highs. Brent crude was reported at $82.60 per barrel, while WTI stood at $77.59 and Murban at $81.10.
Although most of the depot prices remain slightly above Dangote Refinery’s N1,165 rate, industry watchers say operators are adjusting to prevent customers from switching suppliers.
Source: UGC
They also expect some depots to eventually cut prices below Dangote’s rate, as operators previously did in the diesel market.
For Nigerian motorists, the unfolding competition could become significant if the wholesale price reductions are passed down to filling stations, potentially bringing further relief at the pump.
Dangote sells petrol cheapest
Legit.ng earlier reported that Dangote Refinery and Pinnacle are selling petrol at the lowest rate of N1,166 per litre among various depots.
This significant drop in depot pricing could greatly impact consumers as fuel marketers adjust their pump prices in response to shifting supply costs.
As the fuel distribution landscape evolves, Dangote's initiative to deliver petrol without charge to marketers in six states marks a pivotal move aimed at enhancing accessibility and affordability across Nigeria.
Source: Legit.ng
