Competition Among Depots Sparks Fresh Drop In Petrol And Diesel Prices

Petrol and diesel prices declined across major depots in Lagos, Port Harcourt and Warri on Tuesday as increased competition among petroleum marketers coincided with a sharp drop in global crude oil prices.

The price reductions followed a significant fall in international oil benchmarks, with Brent crude dropping by $4.68, or 5.59 per cent, to $79.09 per barrel. West Texas Intermediate fell by $4.79 to $75.55 per barrel, while the OPEC basket lost $8.87 to close at $79.50 per barrel. The Indian crude basket also recorded a decline, settling at $88.12 per barrel.

Industry observers say lower crude prices could reduce the cost of refined petroleum products, although a prolonged decline may also affect oil-exporting countries such as Nigeria through reduced export earnings.

In Lagos, major suppliers maintained relatively stable depot prices, with Dangote Petroleum Refinery keeping its ex-depot petrol price at ₦1,215 per litre. Pinnacle and NIPCO also retained prices at ₦1,215 and ₦1,216 per litre, respectively.

Ardova reduced its depot price by ₦1 to ₦1,216 per litre, while African Terminal and Integrated Depot increased theirs slightly to ₦1,217 per litre. MRS maintained its ex-depot petrol price at ₦1,218 per litre, leaving prices among major Lagos depots clustered between ₦1,215 and ₦1,218 per litre, an indication of growing competition for marketers and bulk buyers.

Diesel prices remained largely stable in Lagos, although Emadeb reduced its Automotive Gas Oil price by ₦10 to ₦1,620 per litre, while Dangote made a marginal increase of ₦1 to ₦1,651 per litre. Most other depots maintained diesel prices within the ₦1,620 to ₦1,625 per litre range.

In Port Harcourt, Matrix lowered its petrol price by ₦2 to ₦1,220 per litre, while Liquid Bulk retained its price at the same level. Diesel prices also eased, with Bulk Strategic cutting its price by ₦10 to ₦1,665 per litre and Matrix reducing its diesel price by ₦5 to ₦1,670 per litre.

Warri recorded some of the most significant price adjustments during the trading session. Matrix reduced its petrol price by ₦7 to ₦1,221 per litre, while A.Y.M. Shafa, Optima and Rainoil also announced price cuts. On the diesel side, NIPCO recorded the biggest reduction, slashing its price by ₦15 to ₦1,650 per litre, while Matrix and A.Y.M. Shafa each reduced their prices by ₦10.

Retail prices also reflected the downward trend. Market checks showed that MRS reduced its pump price for petrol from ₦1,280 to ₦1,245 per litre, while several other filling stations across Lagos lowered prices to between ₦1,245 and ₦1,250 per litre.

The latest adjustments are expected to intensify competition among fuel marketers and could trigger further reductions in pump prices if global crude prices remain subdued and depot prices continue to decline.