Dangote, Marketers Cut Petrol Prices as Crude Oil Declines

The Dangote Petroleum Refinery and several petroleum marketers have reduced petrol prices across major depots in Lagos, Port Harcourt, Calabar and Warri following a decline in international crude oil prices.

The latest depot price report from Petroleumprice.ng showed that some of the biggest reductions occurred in Lagos, where operators lowered Premium Motor Spirit prices by as much as N25 per litre.

Dangote Refinery reduced its petrol price from N1,350 to N1,325 per litre, representing a N25 reduction.

Ascon, Integrated, Pinnacle and Sahara also reduced their prices by N24 per litre, with PMS selling for between N1,326 and N1,327 at their depots.

MRS lowered its price by N20 to N1,332 per litre, while Wosbab listed petrol at N1,330.

Crude Prices Retreat

The adjustments came amid softer prices for some major international crude benchmarks.

Brent crude traded at $99.77 per barrel, while West Texas Intermediate declined by $1.20, or 1.3 per cent, to $91.17 per barrel. Brent had traded as high as $109 per barrel the previous week.

Murban crude, however, moved in the opposite direction, gaining $4.18, or 3.8 per cent, to $114.20 per barrel.

Movements in international crude prices are important to Nigeria’s downstream petroleum market because they influence both the cost of imported refined products and the pricing environment for locally refined fuels.

The decline in Brent and WTI consequently provided room for some marketers and refiners to adjust their depot prices downward.

Petrol Prices Fall in Port Harcourt, Calabar

Price reductions were also recorded outside Lagos.

In Port Harcourt, Masters reduced its petrol price by N2 to N1,328 per litre, while Stockgap lowered its price by N7 to N1,323.

Bulk Strategic and Sigmund listed petrol at N1,328 per litre, while Matrix maintained its price at N1,330.

Calabar recorded some of the lowest prices among the markets surveyed.

Mainland reduced its PMS price by N7 to N1,320 per litre, while Alkanes lowered its price by N2 to N1,325. Matrix retained a price of N1,330, while Sobaz increased its price marginally by N1 to N1,328.

Mixed movements were also recorded in Warri.

Keonamex reduced its petrol price by N3 to N1,327 per litre, while Nepal and Prudent lowered their prices to N1,329 and N1,328, respectively.

Matrix increased its price by N3 to N1,330, while Optima raised its rate by N1 to N1,328 per litre.

Diesel Prices Also Decline

The Automotive Gas Oil market also recorded price reductions across several depots.

In Lagos, Chipet reduced its diesel price by N15 to N1,815 per litre, while Ascon, Duport and Integrated each lowered their prices by N5 to the same level.

Ibachem, Ibeto, Dangote, Obat and Pinnacle listed diesel at between N1,815 and N1,860 per litre.

Port Harcourt recorded a larger adjustment, with Masters reducing its diesel price by N35 to N1,900 per litre.

In Warri, Matrix cut its diesel price by N50 to N2,000 per litre, while Prudent and Rain Oil reduced their prices by N10 to N1,940.

Lower Depot Prices Could Filter to Filling Stations

The latest adjustments indicate that changes in international crude prices are beginning to feed into Nigeria’s wholesale petroleum market.

However, further reductions will depend on several factors, including global crude prices, foreign exchange movements and the cost of refined petroleum products.

Lower depot prices could eventually translate into cheaper petrol at filling stations as marketers replenish their inventories at reduced wholesale rates.

The extent of the reduction at the pump may vary across the country because retail prices are also affected by transportation costs, location and individual marketers’ margins.

Petrol currently sells for between N1,370 and N1,450 per litre in some locations, leaving consumers watching to see whether the latest depot reductions will result in lower pump prices.