PETROL PRICE PLUNGE Dangote Refinery Shocks Market With Slashed Depot Prices

PETROL PRICE PLUNGE Dangote Refinery Shocks Market With Slashed Depot Prices

The cost of Premium Motor Spirit (PMS) at private depots across Nigeria has dropped to ₦925 per litre, following Dangote Petroleum Refinery’s decision to cut its ex-depot price from ₦950 to ₦890 per litre, effective Saturday. This represents a…PETROL PRICE PLUNGE Dangote Refinery Shocks Market With Slashed Depot Prices

notable ₦27 decrease from the highest depot price of ₦952 recorded last Friday.

New Depot Prices Across Nigeria

A market survey indicates that several depots have adjusted their loading prices accordingly:

• Nipco Depot: ₦935/litre (down from ₦952)
• Chipet Depot: ₦935/litre (previously ₦945)
• Aiteo Depot: ₦925/litre (down from ₦942)
• Wosbab Depot: ₦930/litre (previously ₦947)
• Rain Oil Depot: ₦935/litre (down from ₦947)
• Matrix Depot (Warri): ₦960/litre (previously ₦970)
• AYM Shafa (Warri): ₦960/litre (previously ₦970)
• Zone 4 Depot (Calabar): ₦950/litre (down from ₦958)
• Alkanes Depot: ₦949/litre
• Northwest Depot: ₦950/litre

Marketers Struggle with Unchanged Pump Prices

Despite the reduction in depot prices, fuel pump prices remain unchanged as many marketers had stocked up on petrol at higher rates before the price drop. This puts them at risk of financial losses if they adjust their selling prices too soon.

Several marketers expressed frustration over the timing of the reduction, which came just hours after they had made bulk purchases at higher prices, making it challenging to remain competitive without incurring losses.

Industry Reactions

Oil and gas expert Olatide Jeremiah commented that the price reduction was anticipated due to Dangote Refinery’s market influence.

“Dangote Refinery’s decision to lower its petrol price to ₦890 has forced private depots and importers to follow suit. With his refining capacity and distribution network, he is now the leading force in Nigeria’s downstream sector,” Jeremiah explained.

He added that the development signals the end of price hoarding and artificial market manipulation, as competition is now compelling industry players to align their prices with market realities.

“The days of hoarding and price speculation are over. The market is now dictating fair pricing, and we should soon see a reduction in pump prices as well,” he concluded.

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