Petrol Depot Prices Drop As Dangote Refinery Slashes Cost To ₦890/Litre

The loading cost of Premium Motor Spirit (PMS) at private depots in Nigeria dropped to ₦925 per litre on Monday, following the decision by Dangote Petroleum Refinery to reduce its ex-depot price from ₦950 to ₦890 per litre, effective Saturday.

This marks a significant ₦27 reduction from the highest depot price of ₦952 per litre recorded last Friday.

Depot Prices Drop Across the Country

A market survey across various private depots showed a notable reduction in loading prices:

Nipco Depot reduced its price to ₦935/litre from ₦952/litre recorded last Friday.

Chipet Depot adjusted its price to ₦935/litre, down from ₦945/litre.

Aiteo slashed its price to ₦925/litre from ₦942/litre.

Wosbab Depot now sells at ₦930/litre, down from ₦947/litre.

Rain Oil Depot also reduced its price to ₦935/litre from ₦947/litre.

In Warri, Matrix Depot adjusted its rate to ₦960/litre from ₦970/litre, while AYM Shafa also dropped to ₦960/litre.

In Calabar, Zone 4 Depot now sells at ₦950/litre, down from ₦958/litre.

Alkanes Depot adjusted its price to ₦949/litre, while Northwest Depot reduced its price to ₦950/litre.

Despite these depot price reductions, retail pump prices remain unchanged, as marketers who purchased fuel before the price drop now face potential losses.

Many petroleum marketers who stocked up on fuel before the price drop now find themselves struggling to sell at competitive rates, as they risk incurring millions of naira in losses.

Some marketers lamented that the sudden price slash came a few hours after they purchased fuel at a higher rate, making it difficult to adjust their pricing without taking a financial hit.

Commenting on the development, oil and gas expert, Olatide Jeremiah in an interview with Punch, said the price reduction was expected following Dangote Refinery’s decision to adjust its price.

He stated, “Dangote refinery’s reduction of petrol to ₦890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in refining and gantry loading has earned him the market leader in the downstream sector.”

Jeremiah noted that market forces are now forcing competitors to adjust prices accordingly, bringing an end to price hoarding and manipulation.

“The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through reduction of fuel at the pump,” he said.