Petrol Prices at Depots Decline to N880.5 Per Litre

Due to increased competition among suppliers in the downstream sector, the average price of Premium Motor Spirit (petrol) at private depots and the Dangote Refinery decreased somewhat on Tuesday, from ₦881.5 to ₦880.5 per litre.

Ex-depot prices were lowered from ₦890 to ₦889 per litre by major private depot operators, such as Matrix, A.Y.M. Shafa, and Sigmund Zamson, who mostly operate in Warri, Delta State, and Calabar, Cross River State.

In a same vein, Pinnacle Oil and Gas kept its pricing at ₦872 per litre, however the Dangote Petroleum Refinery changed it to ₦872 per litre, a ₦1 decrease from its prior cost of ₦873 per litre.

As deregulation continues to alter the market structure, the development comes after providers’ price competition intensifies.

Last Monday, the Major Energies Marketers Association of Nigeria (MEMAN) set the landing cost of gasoline at ₦829.77 per litre, which is 5.69% less than the gantry rate of ₦877 per litre at the Dangote Refinery.

However, retail rates at filling stations in Lagos, such as MRS, Ardova, and NNPC Limited outlets, continued to range between ₦920 and ₦922 per litre despite the downward revision at depots, indicating that customers had not yet felt the impact of the price reduction.

Vanguard claims that the naira was trading at ₦1,443.77 per dollar on the black market as of Tuesday, which is the reason for the tardy reaction at the pump to foreign exchange difficulties.

MEMAN clarified in its most recent Energy Bulletin, which is available on its website, that variations in the Brent crude benchmark, which is presently trading at $67.02 a barrel, had an impact on the price movements.

“The average 30-day report for PMS stood at ₦829.77 per litre, while the spot prices were ₦815.38 (ASPM) and ₦815.40 (NPSC-NOJ) per litre,” MEMAN said.

“Aviation Turbine Kerosene (ATK) recorded ₦962.53 per litre during the same period, while Diesel (AGO) averaged ₦974.50 per litre.”

Deregulation Fueling Competition in the Market
In response, Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), told Vanguard that the price changes are a reflection of the realities of a deregulated market.

“Competition should be expected because the downstream sector has been deregulated,” Obasi stated. Competition is anticipated to give consumers in the home market greater options.