The Nigerian downstream petroleum industry witnessed another round of reductions in depot prices for petrol and diesel on Monday.
Dangote Petroleum Refinery has now joined several leading fuel marketers in lowering prices after a high-level engagement with the Federal Government.
The latest price review followed the Federal Government’s call on industry operators to adjust fuel prices in line with the recent decline in international crude oil prices, as competition within the sector continues to increase and local fuel supply improves.
FG presses marketers over high fuel prices
Addressing participants at a stakeholders’ meeting on the cost-reflective pricing of Premium Motor Spirit (PMS), the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated that the prevailing retail price of petrol no longer reflected existing market conditions.
The meeting, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was attended by representatives of the Dangote Petroleum Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depots 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 a Vanguard report.
Lokpobiri maintained that marketers were quick to raise fuel prices when crude oil sold for more than $118 per barrel, yet consumers have not enjoyed corresponding relief despite the significant fall in crude prices, with Brent crude now trading below $70 per barrel.
He further emphasised that although the petroleum sector now operates under a fully deregulated market, deregulation must not be used as an opportunity for excessive profiteering.
Dangote, others announce fresh depot prices
In the aftermath of the meeting, Dangote Refinery reduced its Lagos ex-depot price for petrol by N3, bringing it down from N1,079 to N1,076 per litre, while keeping its diesel price unchanged at N1,500 per litre.
Several other major depot operators also revised their prices downward. NIPCO trimmed its petrol price by N2 to N1,076 per litre.
Pinnacle, Sahara, AIPEC, and African Terminal all adjusted their petrol prices to N1,075 per litre after implementing reductions of between N3 and N4. Meanwhile, Aiteo retained its existing petrol price of N1,075 per litre.
Diesel prices also declined at a number of depots. Rain Oil lowered its diesel price by N15 to N1,430 per litre, while Ibeto, Duport and Ibachem adopted the same N1,430 per litre price. Dangote Refinery, however, made no changes to its diesel price.
Bigger price cuts recorded outside Lagos
Fuel marketers operating in other parts of the country also announced fresh downward price adjustments. In Port Harcourt, Matrix reduced the price of petrol by N8 to N1,087 per litre and cut diesel by N55 to N1,465 per litre, representing the largest diesel price reduction recorded during the trading session.
Sigmund slashed its petrol price by N12 to N1,082 per litre but marginally increased its diesel price by N2 to N1,463 per litre. In Calabar, Fynfield reduced its petrol price by N7 to N1,090 per litre, while Soroman also lowered its petrol price by N5 to N1,090 per litre.
In Warri, both Matrix and Prudent reduced their petrol prices by N5 to N1,085 per litre. Prudent also cut its diesel price by N25 to N1,475 per litre, while A.Y.M. Shafa reduced its diesel price by N3 to N1,455 per litre.
