In a significant relief to motorists, several petrol stations across Nigeria have reduced the pump price of Premium Motor Spirit (PMS) to below ₦900 per litre, following a price cut by the Dangote Petroleum Refinery. The adjustment comes after the refinery lowered its ex-depot rate from ₦880 to ₦840 per litre, effective June 30.
A market survey conducted in Lagos and Ogun states on Sunday revealed a downward shift in retail prices, with many stations now selling PMS between ₦875 and ₦890 per litre. Some outlets, including MRS Oil—a key distributor of Dangote products—revised their pump price in Lagos to ₦885 from ₦925 a week earlier.
Regional Breakdown of New Prices
According to sources in the downstream sector, Dangote’s new pricing strategy varies by region:
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South-West: ₦895 per litre
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North-Central and North-West: ₦905
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South-East, South-South, and North-East: ₦915
The recent reduction is attributed to falling crude oil prices after geopolitical tensions in the Middle East eased. Earlier this year, the refinery had increased its petrol price due to the temporary surge in global oil prices, driven by the Israel-Iran conflict.
Marketers Now Aligning With New Rates
Despite the refinery’s price cut last week, many marketers initially held off on reducing their pump prices, citing unsold inventories purchased at higher rates. The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, explained that retailers needed time to clear old stock before adopting new prices.
However, by the weekend, retail outlets began adjusting their prices in response to the new supply cost. Checks by our correspondent along the Lagos-Ibadan Expressway confirmed the trend:
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As-Sallam: ₦875
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AP and SGR: ₦880
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Akiavic: ₦885
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SAO: ₦890
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NIPCO and Satellite: ₦900
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Rainoil: ₦910
Depots Also Slash Prices
Major depots in Lagos, including RainOil, Pinnacle, Matrix, and Emadeb, also adjusted their ex-depot prices to ₦840 or slightly below. Platforms like Petroleumprice.ng reported prices as low as:
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First Royal and Menj: ₦838
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Aiteo: ₦837
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NIPCO: ₦844
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MAO and Integrated: ₦839
Industry analysts say with Dangote’s lower gantry price, PMS should retail around ₦890 or even less, depending on location and logistics.
What This Means for Consumers
This development marks a shift from the highs of just a few weeks ago, when PMS sold for between ₦915 and ₦960 per litre nationwide, with prices hitting ₦980 in some northern states due to transportation costs.
Although market volatility remains a concern, the current dip offers temporary relief amid persistent economic challenges. Consumers are hopeful that with stabilized crude oil prices and consistent domestic refining, fuel costs may trend downward further in the coming months.
Outlook
The recent price changes demonstrate the growing influence of local refining on Nigeria’s petroleum pricing. As Dangote’s refinery ramps up production and distribution networks expand, industry watchers anticipate more price stability, provided that crude oil markets remain relatively calm.
