Petrol Prices Drop as Six Depots Slash Costs Amid Growing Competition

Six major depot operators have lowered their Premium Motor Spirit (PMS) prices, commonly known as petrol, as competition intensifies within Nigeria’s downstream petroleum industry.

The depots that implemented price cuts yesterday include Emadeb, First Royal, MENJ, Aiteo, Pinnacle, and Hyde.

Emadeb reduced its depot price from N903 to N827 per litre, while First Royal lowered theirs slightly from N828 to N826 per litre. 

MENJ, Aiteo, Pinnacle, and Hyde also followed suit, adjusting their prices from N827 to N826, N826 to N825, N856 to N850, and N869 to N868 per litre respectively.

Industry watchers from Petroleumprice.ng anticipate that petrol depot prices will continue to decline in the coming weeks, driven by sustained lower crude oil prices, which are currently hovering around $65 per barrel in the global market.

An anonymous industry expert noted that market players are also expecting further downward price adjustments from the Dangote Petroleum Refinery. 

“Since depot prices are currently aligned with Dangote Refinery’s gantry price of N825 per litre, a further reduction by the refinery could be on the horizon,” the source said.

Meanwhile, Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), explained that the recent price cuts stem from depot owners importing large quantities of petrol. 

“Without lowering prices, it would be challenging for depots to compete effectively in the domestic market. This adjustment is a direct response to increasing competition,” he said.

Dr. Gillis-Harry also cautioned that while competition is beneficial, excessive rivalry might negatively impact the sector. 

“We need balanced and healthy competition that benefits both consumers and industry stakeholders,” he added.

In related developments, Dangote Petroleum Refinery & Petrochemicals recently affirmed its commitment to maintaining petrol price stability despite fluctuating crude oil prices globally. 

In a statement signed by Anthony Chiejina, the Group Chief Branding and Communications Officer, the company highlighted its efforts to support Nigeria’s economy by easing the financial burden on consumers through consistent pricing policies.