Nigeria’s downstream petroleum sector recorded another round of price reductions on Monday as the Dangote Petroleum Refinery and several major fuel marketers lowered their depot prices for Premium Motor Spirit (PMS), commonly known as petrol, alongside fresh adjustments to diesel prices.
The latest reductions come amid sustained pressure from the Federal Government for fuel prices to reflect the recent decline in global crude oil prices, while increasing competition among marketers and improved local product availability continue to reshape the market.
Speaking at a stakeholders’ meeting on cost-reflective pricing of petrol convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the current retail price of petrol no longer reflects prevailing international crude oil prices.
The meeting brought together representatives of the Dangote Petroleum Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
According to the latest depot pricing report, Dangote Petroleum Refinery reduced its Lagos ex-depot petrol price by ₦3 per litre, bringing it down from ₦1,079 to ₦1,076 per litre. The refinery, however, retained its diesel ex-depot price at ₦1,500 per litre.
Several other marketers also adjusted their depot prices downward in response to growing competition.
In Lagos, NIPCO reduced its petrol depot price by ₦2 to ₦1,076 per litre, while Pinnacle lowered its price by ₦3 to ₦1,075 per litre. Sahara, AIPEC and African Terminal each reduced their prices by ₦4, selling petrol at ₦1,075 per litre. Aiteo maintained its petrol price at ₦1,075 per litre.
Diesel prices also witnessed notable reductions across several depots. Rain Oil cut its diesel price by ₦15 to ₦1,430 per litre, while Ibeto, Duport and Ibachem also adjusted their prices to ₦1,430 per litre. Dangote Refinery kept its diesel price unchanged at ₦1,500 per litre.
In Port Harcourt, marketers implemented even steeper reductions. Matrix reduced its petrol price by ₦8 to ₦1,087 per litre and slashed diesel by ₦55 to ₦1,465 per litre, recording the largest diesel price reduction during the trading session.
Sigmund also reduced its petrol price by ₦12 to ₦1,082 per litre, although it increased its diesel price slightly by ₦2, bringing it to ₦1,463 per litre.
The downward trend extended to other parts of the country. In Calabar, Fynfield reduced its petrol price by ₦7 to ₦1,090 per litre, while Soroman lowered its price by ₦5 to the same level.
In Warri, Matrix and Prudent both cut petrol prices by ₦5, selling at ₦1,085 per litre. On the diesel side, Prudent reduced its price by ₦25 to ₦1,475 per litre, while A.Y.M. Shafa lowered its diesel price by ₦3 to ₦1,455 per litre.
Industry analysts attributed the latest adjustments to increased competition among suppliers, improved domestic refining capacity and relatively stable international crude oil prices.
Addressing stakeholders after the meeting, Lokpobiri said the Federal Government did not interfere when petrol prices increased in response to rising crude oil prices, but stressed that there is now no justification for maintaining current pump prices with Brent crude trading below 70 dollars per barrel.
He noted that while Nigeria operates a fully deregulated petroleum market, deregulation should not be interpreted as a licence for excessive profiteering.
According to the minister, the Petroleum Industry Act also empowers the NMDPRA to prevent unfair pricing practices that negatively affect consumers.
Lokpobiri said discussions with marketers were productive and would continue until a workable framework is established to ensure domestic petrol prices more accurately reflect developments in the global crude oil market.
The Chief Executive of the NMDPRA, Rabiu Umar, also said the widening gap between declining international crude oil prices and relatively high domestic petrol prices made the engagement with marketers necessary.
He expressed optimism that continued dialogue between regulators and industry operators would produce more affordable fuel prices for Nigerians, similar to the progress previously achieved in the domestic Liquefied Petroleum Gas (LPG) market.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria said petrol prices could fall below ₦800 per litre once independent marketers begin purchasing products directly from the Dangote Petroleum Refinery.
IPMAN National President, **Abubakar Garima>, stated that the association has already reduced petrol prices by about ₦125 per litre nationwide and pledged to implement further reductions whenever the cost of acquiring products declines.
Dangote Refinery, Major Marketers Cut Petrol, Diesel Depot Prices as FG Pushes for Lower Pump Rates
