Petrol depot prices drop by up to N23/litre

Petrol depot prices declined across major supply hubs on Tuesday as marketers introduced fresh price cuts, reflecting intensifying competition in Nigeria’s downstream petroleum market.

A review of the mid-day depot price report showed that major depots in Lagos, Warri, Calabar and Port Harcourt either reduced their ex-depot prices or retained existing rates, with none recording an increase.

In Lagos, Dangote Petroleum Refinery maintained its ex-depot price at N1,216 per litre, the lowest among major suppliers. Pinnacle matched the price after reducing its rate by N2 to N1,216 per litre.

MRS also cut its price by N2 to N1,222 per litre, while Emadeb reduced its rate by N7 to N1,218 per litre. Other marketers, including Aiteo, Nipco, Ascon, Shema and T-Time, maintained prices ranging between N1,218 and N1,220 per litre.

The price adjustments come amid increasing competition driven by stronger domestic supply from the Dangote Refinery alongside continued product imports by marketers.

In Warri, several depots also lowered their prices. Bulk Strategic, Liquid Bulk, Masters, Matrix and Sigmund all reduced rates to about N1,245 per litre.

Rain Oil recorded one of the largest reductions, cutting its price by N23 to N1,245 per litre, while Matrix slashed its rate by N10 to the same level. TSL also reduced its price by N6 to N1,244 per litre.

Calabar recorded similar movements, with Northwest cutting its price by N15 to N1,235 per litre and Mainland reducing its rate by N10 to N1,240 per litre. Hong Petroleum lowered its price by N2 to N1,233 per litre, the lowest quoted in the city.

In Port Harcourt, Matrix reduced its ex-depot petrol price by N3 to N1,243 per litre, while Optima also cut its rate by N2 to N1,243 per litre. Rain Oil matched its Warri adjustment, reducing its price by N23 to N1,245 per litre.

Industry analysts attributed the widespread reductions to improved product availability and growing competition among marketers seeking to attract bulk buyers.

They noted that the narrowing gap between Lagos depot prices of N1,216 per litre and prices of about N1,245 per litre in other supply centres indicates increasing price convergence across the country.

Despite the reductions at depots, analysts said the effect on retail pump prices would depend on transportation costs, marketers’ margins and other operating expenses.

Diesel prices also recorded declines across several locations.

In Lagos, Matrix reduced the ex-depot price of Automotive Gas Oil by N55 to N1,645 per litre, while Aiteo cut its price by N15 to N1,630 per litre.

In Warri, Matrix slashed diesel prices by N70 to N1,650 per litre, while A.Y.M Shafa reduced its rate by N40 to the same level.

The latest price movements suggest that improved supply and increased competition are continuing to shape pricing trends in Nigeria’s downstream petroleum market.