The Dangote Petroleum Refinery and other petroleum marketers have reduced the prices of Premium Motor Spirit (petrol) across major depots in Lagos, Port Harcourt, Calabar, and Warri. This move follows a decline in international crude oil prices. According to the latest depot price report published by Petroleumprice.ng, several operators in Lagos cut their petrol prices by between N20 and N24 per litre.
In Lagos, the Dangote Refinery reduced its PMS price from N1,350 to N1,325 per litre, representing a N25 reduction. Other marketers, including Ascon, Integrated, Pinnacle, and Sahara, also cut their prices by N24, with their products now selling between N1,326 and N1,327 per litre. MRS reduced its petrol price by N20 to N1,332 per litre, while Wosbab recorded a current price of N1,330.
The reductions in petrol prices come as Brent crude traded below $100 per barrel, while the United States benchmark, West Texas Intermediate, also declined to $91.17 per barrel. According to Oilprice.com, Brent crude fell to $99.77 per barrel, while WTI dropped by $1.20, or 1.30 per cent, to $91.17 per barrel. This decline in crude prices is significant for Nigeria’s downstream petroleum market.
The decline in petrol prices was also recorded outside Lagos. In Port Harcourt, Masters reduced its PMS price by N2 to N1,328 per litre, while Stockgap recorded a N7 reduction to N1,323. Bulk Strategic and Sigmund listed petrol at N1,328, while Matrix retained its price at N1,330. The reductions suggest that the recent decline in crude prices is beginning to filter into the domestic wholesale market.
In Calabar, Mainland recorded the lowest petrol price among the locations covered, reducing its rate by N7 to N1,320 per litre. Alkanes cut its price by N2 to N1,325, while Matrix maintained N1,330. Sobaz, however, increased its price marginally by N1 to N1,328. The mixed movement in petrol prices across different locations reflects the volatility in the international oil market.
On the automotive gas oil market, commonly known as diesel, prices also declined in some locations. In Lagos, Chipet reduced its AGO price by N15 to N1,815 per litre, while Ascon, Duport, and Integrated each cut their prices by N5 to the same level. The decline in diesel prices is also attributed to the reduction in international crude oil prices.
The lower depot prices could influence retail petrol prices as marketers replenish their stocks at the reduced rates. Petrol now trades between N1,370 and N1,450, depending on the location. The extent of further reductions will depend on movements in crude prices, foreign exchange, and the cost of refined petroleum products.
Key points
- The Dangote Petroleum Refinery and other marketers have reduced petrol prices due to a decline in international crude oil prices.
- The reductions in petrol prices were recorded across major depots in Lagos, Port Harcourt, Calabar, and Warri.
- The decline in crude prices is significant for Nigeria’s downstream petroleum market, influencing the cost of imported refined products and the pricing of locally refined petroleum products.
