Relief As Petrol Prices Drop Amid Competition Among Suppliers

The average price of Premium Motor Spirit (PMS), popularly known as petrol, witnessed a marginal decline on Tuesday, falling to ₦880.5 per litre from ₦881.5 as market competition among private depot operators and the Dangote Refinery intensified.

The latest price adjustment marks a continued reflection of Nigeria’s deregulated downstream market, which has seen increased rivalry among fuel suppliers striving to attract more marketers.

Several major private depot operators, including Matrix, A.Y.M. Shafa, and Sigmund Zamson, reportedly slashed their ex-depot prices from ₦890 to ₦889 per litre. 

These firms operate primarily in Warri, Delta State, and Calabar, Cross River State.

Similarly, the Dangote Petroleum Refinery reviewed its gantry price downward from ₦873 to ₦872 per litre, aligning with Pinnacle Oil and Gas, which maintained its selling price at ₦872.

Industry analysts say the price movement underscores the growing influence of competition since the removal of fuel subsidies and the full deregulation of the petroleum sector. 

“We are now seeing natural market forces at play,” said an oil industry consultant, Musa Alade. “Prices are being determined more by supply dynamics than by government control.”

According to the Major Energies Marketers Association of Nigeria (MEMAN), the current landing cost of petrol stands at ₦829.77 per litre, representing a 5.69 per cent drop compared to the Dangote Refinery’s previous ex-depot rate of ₦877. 

The group noted that the adjustment reflects improved importation conditions and slightly lower global oil prices.

However, despite the drop at depots, the impact is yet to reach the pump. 

Checks across several filling stations in Lagos, including MRS, Ardova, and NNPC Retail outlets, showed that petrol prices still range between ₦920 and ₦922 per litre.

Industry operators attribute the slow retail adjustment to persistent foreign exchange challenges. 

The naira traded at ₦1,443.77 per dollar on the parallel market as of Tuesday, a factor many marketers say continues to affect cost recovery and retail pricing.

In its latest Energy Bulletin, MEMAN explained that the changes in petrol pricing are linked to shifts in the Brent crude benchmark, which currently averages $67.02 per barrel. 

The report also highlighted that diesel (AGO) averaged ₦974.50 per litre, while aviation fuel (ATK) sold for ₦962.53 per litre during the same period.

Commenting on the situation, the National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, said the development shows the realities of a free market system.

“The downstream sector has been fully deregulated, and competition is the natural outcome,” Obasi said. 

“This is good for the economy in the long run because it gives consumers more options and encourages efficiency among marketers.”

AFRIPOST reports that the continued interplay of exchange rates, crude oil prices, and refining capacity will determine future petrol prices in Nigeria.