Petrol depot prices declined across major supply locations on Tuesday as marketers introduced fresh price cuts amid growing competition in Nigeria’s downstream petroleum sector.
According to Vanguard, an analysis of the midday depot price report showed that major suppliers in Lagos, Warri, Calabar and Port Harcourt either reduced their prices or retained existing rates, with no increase recorded across the locations.
The reductions come as increased domestic supply from the Dangote Petroleum Refinery, alongside continued fuel imports and activities by independent marketers, intensifies competition for bulk buyers.
In Lagos, the Dangote refinery maintained its ex-depot petrol price at ₦1,216 per litre, the lowest rate among the major suppliers covered in the report.
Pinnacle reduced its price by ₦2 to ₦1,216 per litre, bringing its rate in line with that of the Dangote refinery.
MRS lowered its price by ₦2 to ₦1,222 per litre, while Emadeb announced a ₦7 reduction, bringing its petrol price to ₦1,218 per litre.
Other suppliers, including Aiteo, Nipco, Ascon, Shema and T-Time, retained prices ranging from ₦1,218 to ₦1,220 per litre.
The adjustments indicated that marketers were increasingly reviewing their rates to remain competitive and secure a larger share of the market.
Several depots in Warri also reduced petrol prices, with Bulk Strategic, Liquid Bulk, Masters, Matrix and Sigmund setting their rates at about ₦1,245 per litre.
Rain Oil recorded one of the largest reductions after cutting its price by ₦23 to ₦1,245 per litre. Matrix reduced its price by ₦10 to the same level, while TSL lowered its rate by ₦6 to ₦1,244 per litre.
The reductions narrowed the difference between depot prices in Lagos and those in other major supply centres.
Calabar, Port Harcourt Depots Lower Rates
In Calabar, Northwest reduced its depot price by ₦15 to ₦1,235 per litre, while Mainland cut its rate by ₦10 to ₦1,240 per litre.
Hong Petroleum announced a ₦2 reduction, bringing its price to ₦1,233 per litre, the lowest quoted rate in the area.
A similar trend was recorded in Port Harcourt, where Matrix reduced its petrol price by ₦3 to ₦1,243 per litre.
Optima also lowered its price by ₦2 to ₦1,243 per litre, while Rain Oil cut its rate by ₦23 to ₦1,245 per litre.
Industry analysts attributed the widespread reductions to improved supply and increased competition among marketers seeking to attract bulk purchasers.
The narrowing gap between the ₦1,216 per litre rate in Lagos and prices of about ₦1,245 per litre in other major markets also suggested that depot prices were gradually converging across the country.
However, the extent to which the reductions will affect retail pump prices will depend on transportation costs, marketers’ margins and other operational expenses.
Meanwhile, depot prices for Automotive Gas Oil, popularly known as diesel, also declined in several locations.
In Lagos, Matrix reduced its diesel price by ₦55 to ₦1,645 per litre, while Aiteo cut its rate 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 announced a ₦40 reduction, bringing its rate to the same level.
