Depot Owners Reduce Fuel Cost Below Dangote's Rate As NNPC Announces New Pump Price

• Some depot owners have lowered petrol prices again and are now selling below the rate offered by Dangote refinery
• New data shows that the new price changes have been reflected across major depots nationwide
• There is a fierce petrol price war in Nigeria's downstream oil sector, involving Dangote refinery, the NNPC

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.

Fuel depot owners have reduced the price of petrol below the rate offered by Dangote Refinery, intensifying competition in Nigeria’s downstream sector.

The move comes as the Nigerian National Petroleum Company Limited (NNPC) announced a new pump price of N870 at its filling stations in Lagos, also below the rate offered by Dangote retail partners.

Data obtained from Petroleumprice.ng showed that multiple depots across Lagos, Warri, and Delta show operators such as AITEO, AIPEC, A.A. Rano, and NIPCO are offering premium motor spirit (PMS) at between N826 and N826 per litre as of Wednesday, June 3

Dangote refinery is selling to marketers at an average ex-depot price of N830 per litre.

Breakdown of depot prices

Among the 21 depots prices captured, on Wednesday Masters depot emerged as the most expensive, posting a fuel price of N870 per litre.

The figure places it ahead of Hyde and Ever depots, both selling at N869.

Other high-priced depots include Sigmund and TSL, each quoting N868, while Pinnacle Warri and First Fortune sold at N856 and N855, respectively.

Meanwhile, other depots, including A&E, Rainoil Lagos, Prudent Oghara, Matrix Warri, Rainoil Delta, and A.Y.M Shafa, maintained prices at N850.

On the lower end of the scale, Aiteo posted the lowest price at N826, followed closely by AIPEC, A. A Rano, Menj, and Integrated, all at N827.

Fuel price changes at filling stations

At the retail side, there is a strong competition going on between the Dangote refinery partners and the NNPC.

The Dangote Refinery lowered its fuel prices for partners from an average of N890–N920 per litre to N875–N905, varying by location.

Dangote’s distribution partners across Nigeria, including MRS, Ardova Plc (AP), Heyden, Optima Energy, TechnoOil, and Hyde, were asked to effect the changes.

A few days later, NNPC stations in Lagos now sell petrol from N870 per litre, a N10 change from N880 per litre.

A similar reduction was recorded at other oil marketers' stations. For example, the Mobil station in the Ikotun area reduced its pump price from N880 to N875.

Additionally, Petrocam, Matrix, and other stations made similar adjustments.

Multiple price cuts favour Nigerians, economy

The recent multiple reductions in petrol prices in Nigeria have had a significant impact on consumers and the fuel market. These price cuts have come as a relief to many Nigerians, particularly with the rising cost of living.

One of the immediate effects of these price reductions is the increased availability of petrol at filling stations. Many stations, which were previously running out of stock due to high costs, are now able to replenish their supplies more frequently.

This has led to a noticeable improvement in fuel access across many regions of the country. In addition, competition among fuel suppliers has pushed some stations to improve their services, aiming to attract more customers by offering better fuel quality and faster service.

Speaking to the impact of these reductions, a regular commuter, Amina Bello, said:

“I’ve noticed that the queues have disappeared, and fuel is now easier to find. Stations that used to run out of fuel by midday are now open all day, and I haven’t had to wait as long to fill up.”

Another consumer, Tunde Adebayo, added:

“The service has improved as well. I’ve seen staff working faster, and the quality of the fuel seems better now. I also haven’t encountered any fuel-related issues with my car since the price cuts.”

While the reductions are certainly a step in the right direction, consumers remain cautious, as the long-term effects on market stability and the economy are yet to be fully understood.

Nonetheless, these changes have provided a much-needed relief to both consumers and businesses that depend on fuel.

Nigerian customs to sell petrol at N400/litre

Earlier, Legit.ng the Nigeria Customs Service authorised the immediate auction of over 39,000 litres of confiscated gasoline and eight vehicles valued at more than N63 million.

The fuel was seized by Operation Whirlwind operatives in smuggling hotspots across the Lagos-Ogun axis, preventing illegal export to the Benin Republic.

The National Coordinator of Operation Whirlwind, Assistant Comptroller General (ACG) Hussein Ejibunu, praised the seizure as a significant victory in the battle against economic sabotage during a press briefing at the Customs Training College in Ikeja.

The article was updated by the head of the business desk, Victor Enengedi, with additional information and comments from petrol consumers.

Source: Legit.ng