The price of Premium Motor Spirit (petrol) at private depots has dropped to N925 per litre as of Monday. This is a decrease of N27 from the N952 per litre that was recorded at the highest-selling depot last Friday.
According to marketers, this price reduction was due to Dangote Petroleum Refinery lowering its ex-depot price of petrol from N950 to N890 per litre, starting from Saturday.
However, this change has negatively affected some petroleum marketers who had bought fuel at higher prices before the new rates were announced. They may now face losses, as they are forced to sell below their purchase cost, leading to potential debts running into millions of naira.
Data on petrol price movements from different depots show significant price reductions:
– Nipco Depot reduced its price from N952 to N935 per litre.
– Chipet lowered its price from N945 to N935 per litre.
– Aiteo slashed its price from N942 to N925 per litre.
– Wosbab Depot dropped its price from N947 to N930 per litre.
– Rain Oil Depot also reduced its price from N947 to N935 per litre.
In Warri, Matrix Depot reduced its price from N970 to N960 per litre, while AYM Shafa also dropped from N970 to N960 per litre. In Calabar, Zone 4 Depot cut its price from N958 to N950 per litre, Alkanes sold at N949 per litre, and Northwest at N950 per litre.
An oil and gas expert, Olatide Jeremiah, commented on the situation, saying the price drop was expected.
“Dangote refinery’s reduction of petrol to 890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in Refining and gantry loading has earned him the market leader in the downstream sector. The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through reduction of fuel at the pump,” he stated.
Jeremiah also urged regulatory authorities to ensure that petrol stations adjust their prices accordingly, so consumers can benefit from the lower depot costs.
