Petrol Prices Under Pressure As Depot Owners Cut Rates To Outshine Rivals

Petrol depot prices recorded fresh declines across Nigeria’s major distribution hubs on Tuesday as marketers slashed rates in a bid to attract buyers amid intensifying competition in the downstream oil sector.

A review of the latest midday depot price report by Vanguard showed that suppliers in Lagos, Warri, Calabar and Port Harcourt either reduced their ex-depot prices or maintained existing rates, with no price increases reported across the surveyed locations.

The downward price movement is being driven by stronger domestic fuel supply from the Dangote Petroleum Refinery, continued importation of petrol, and increased participation by independent marketers, all of which have heightened competition for bulk customers.

In Lagos, the Dangote Petroleum Refinery retained its ex-depot price at ₦1,216 per litre, the lowest among the major marketers monitored. Pinnacle also cut its price by ₦2 to ₦1,216 per litre, matching Dangote’s rate.

MRS reduced its price by ₦2 to ₦1,222 per litre, while Emadeb announced a ₦7 cut, bringing its ex-depot price to ₦1,218 per litre.

Other marketers, including Aiteo, Nipco, Ascon, Shema and T-Time, kept their prices unchanged within the ₦1,218 to ₦1,220 per litre range.

The latest adjustments suggest that marketers are increasingly revising their pricing strategies to remain competitive and expand their market share.

Warri Depots Join Price Cuts

A similar trend emerged in Warri, where several depots lowered their petrol prices.

Bulk Strategic, Liquid Bulk, Masters, Matrix and Sigmund all quoted prices of about ₦1,245 per litre.

Rain Oil posted one of the most significant reductions, cutting its price by ₦23 to ₦1,245 per litre. Matrix also reduced its rate by ₦10 to the same level, while TSL lowered its price by ₦6 to ₦1,244 per litre.

The reductions have further narrowed the price gap between Lagos and other major supply centres.

Calabar, Port Harcourt Follow Suit

In Calabar, Northwest reduced its ex-depot price by ₦15 to ₦1,235 per litre, while Mainland dropped its price by ₦10 to ₦1,240 per litre.

Hong Petroleum also cut its price by ₦2 to ₦1,233 per litre, making it the cheapest supplier in the city.

Port Harcourt witnessed similar adjustments, with Matrix reducing its price by ₦3 to ₦1,243 per litre and Optima lowering its rate by ₦2 to the same level. Rain Oil also announced a ₦23 reduction, settling at ₦1,245 per litre.

Industry analysts attributed the widespread price cuts to improved product availability and growing competition among marketers seeking to win over bulk buyers.

The shrinking difference between Lagos’ ₦1,216 per litre benchmark and the roughly ₦1,245 per litre prices in other supply hubs suggests depot prices are gradually becoming more uniform nationwide.

Despite the reductions at the depot level, the extent to which consumers will benefit at filling stations will depend on transportation costs, marketers’ profit margins and other operational expenses.

Diesel Prices Also Decline

Diesel prices also eased in several locations.

In Lagos, Matrix reduced the ex-depot price of Automotive Gas Oil (diesel) by ₦55 to ₦1,645 per litre, while Aiteo cut its price by ₦15 to ₦1,630 per litre.

In Warri, Matrix lowered its diesel price by ₦70 to ₦1,650 per litre, while A.Y.M Shafa matched the same rate after announcing a ₦40 reduction.