Competition among petroleum marketers and depot operators intensified on Tuesday as prices of Premium Motor Spirit, popularly called petrol, and Automotive Gas Oil, also known as diesel, declined across major depots in Lagos, Port Harcourt and Warri.
Naijaonpoint reports that the price adjustments followed a sharp decline in global crude oil prices, with the international benchmark, Brent crude, falling below the $80-per-barrel mark.
According to Vanguard, market data showed that Brent crude declined by $4.68, representing 5.59 per cent, to $79.09 per barrel.
West Texas Intermediate also dropped by $4.79, or 5.96 per cent, to $75.55 per barrel.
The Organisation of Petroleum Exporting Countries basket recorded the sharpest fall among the major benchmarks, losing $8.87, or 10.04 per cent, to settle at $79.50 per barrel.
The Indian crude basket also declined by 5.78 per cent to $88.12 per barrel.
Although falling crude prices could reduce the cost of refined petroleum products, the trend may weaken the revenues of oil-exporting countries, including Nigeria, if sustained.
The latest mid-day market report showed that major suppliers, including the Dangote Petroleum Refinery, retained their petrol prices, while some independent operators made slight downward adjustments.
In Lagos, Dangote maintained its ex-depot petrol price at ₦1,215 per litre, keeping it among the lowest-priced suppliers in the market.
Pinnacle and NIPCO also retained their prices at ₦1,215 and ₦1,216 per litre, respectively.
Ardova reduced its price by ₦1 to ₦1,216 per litre, while African Terminal and Integrated Depot raised their prices by ₦1 each to ₦1,217 per litre. MRS maintained its petrol price at ₦1,218 per litre.
The narrow range of between ₦1,215 and ₦1,218 per litre among major Lagos depots indicated growing competition for marketers and bulk buyers.
Diesel prices were largely stable across Lagos depots, although Emadeb reduced its Automotive Gas Oil price by ₦10 to ₦1,620 per litre from ₦1,630.
The reduction could provide some relief to manufacturers, transport operators and businesses that depend heavily on diesel-powered equipment.
Dangote, however, raised its diesel price marginally by ₦1 to ₦1,651 per litre.
Most other depots maintained their diesel prices within the range of ₦1,620 to ₦1,625 per litre.
Price Reductions Spread To Port Harcourt
In Port Harcourt, Matrix reduced its petrol price by ₦2 to ₦1,220 per litre, while Liquid Bulk retained its price at ₦1,220.
Diesel prices also declined in the city, with Bulk Strategic cutting its price by ₦10 to ₦1,665 per litre.
Matrix also reduced its diesel price by ₦5 to ₦1,670 per litre. Warri recorded some of the biggest price reductions during the trading session.
Matrix lowered its petrol price by ₦7 to ₦1,221 per litre, while A.Y.M. Shafa reduced its price by ₦4 to ₦1,223. Optima and Rainoil also cut their petrol prices by ₦2 each to ₦1,225 per litre.
Diesel prices similarly declined in the oil-producing city. Matrix and A.Y.M. Shafa reduced their prices by ₦10 each to ₦1,670 and ₦1,665 per litre, respectively.
NIPCO recorded the largest diesel price adjustment in Warri, cutting its price by ₦15 to ₦1,650 per litre. Rainoil and Zamson maintained their diesel prices at ₦1,650 per litre.
Market checks also showed that MRS, which receives supplies directly from the Dangote refinery, reduced its retail petrol price from ₦1,280 to ₦1,245 per litre.
Other marketers in Lagos and surrounding areas reportedly reduced their pump prices from above ₦1,280 per litre to between ₦1,245 and ₦1,250.
The reductions are expected to intensify competition among filling stations and could lead to further adjustments in pump prices if lower crude and depot prices persist.
