As rivalry stiffens in Nigeria’s downstream petroleum sector, six major depot operators have lowered the price of Premium Motor Spirit (PMS), commonly known as petrol, in an apparent bid to stay competitive.
The companies that implemented the price cuts on Wednesday include Emadeb, First Royal, MENJ, Aiteo, Pinnacle, and Hyde.
In the revised pricing, Emadeb dropped its petrol rate from ₦903 per litre to ₦827. First Royal also reduced its price slightly, from ₦828 to ₦826 per litre. MENJ and Aiteo followed suit, adjusting their rates from ₦827 to ₦826 and from ₦826 to ₦825 per litre, respectively. Pinnacle cut its price from ₦856 to ₦850, while Hyde made a marginal adjustment from ₦869 to ₦868 per litre.
Insights from Petroleumprice.ng suggest the trend of falling petrol depot prices may continue in the short term, given the relatively low global crude oil price, currently hovering around $65 per barrel.
An industry insider, who requested not to be named, hinted that the pricing dynamics may soon prompt another adjustment at the Dangote Petroleum Refinery. “With the downward review of depot prices, currently standing at par with the Dangote Refinery N825 per litre gantry price, there are indications that the refinery would soon reduce its price further,” the source said.
Also weighing in on the development, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, explained that the price reductions were necessary for the depot owners to remain viable in the local market.
“The depot owners imported commercial quantities of petrol from the global market. Without the downward price adjustment, it would be difficult for them to sell in the domestic market. It is their response to the competition in the domestic market,” he said.
Dr. Gillis-Harry further noted that consumers might see additional price reductions going forward, though he cautioned against excessive undercutting: “We expect further reduction as competition continues. But too much competition could become harmful to the sector. We need healthy competition to impact on consumers and the sector.”
In response to recent market changes, Dangote Petroleum Refinery & Petrochemicals reiterated its commitment to price stability, stating that it has consistently lowered its fuel prices despite global market volatility.
Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Group, emphasized in a statement that the company’s pricing strategy is driven by a desire to support national economic stability. “The decision to maintain price stability reflects its unwavering commitment to supporting the Nigerian economy and alleviating the burden on consumers from the increase in fuel prices by maintaining price stability,” Chiejina noted.
With depot prices aligning more closely with Dangote’s gantry rate, the sector appears poised for further adjustments — but stakeholders stress the importance of striking a balance between affordability and sustainability.
