The cost of petrol at several major depots has dropped, with some Lagos facilities cutting their prices by as much as ₦24 per litre, raising expectations that filling stations could soon reduce pump prices as they restock.
The latest reductions were recorded on Tuesday amid a decline in international crude oil prices, while depot prices for diesel also fell significantly in some parts of the country.
In Lagos, Ascon, Integrated and Sahara depots reduced their petrol prices by ₦24 per litre, bringing them down from ₦1,351 to ₦1,327. Pinnacle also cut its price by ₦24, from ₦1,350 to ₦1,326, while MRS reduced its price by ₦20 to ₦1,332 from ₦1,352.
Dangote, however, maintained its petrol price at ₦1,325 per litre.
Outside Lagos, smaller reductions were also recorded. In Port Harcourt, Ascon and Integrated reduced their prices by ₦5 each to ₦1,815 per litre, while Ibeto retained its price at the same level.
In Calabar, Mainland reduced its price by ₦7 to ₦1,320 from ₦1,327, while Alkanes cut its price by ₦2 to ₦1,325.
Warri also recorded modest reductions, with Keonamex lowering its price by ₦3 to ₦1,327 from ₦1,330, while Nepal reduced its price by ₦1 to ₦1,329.
The diesel market experienced larger price cuts.
Matrix in Warri reduced its Automotive Gas Oil (AGO) price by ₦50, bringing it down from ₦2,050 to ₦2,000 per litre. Masters in Port Harcourt also reduced its price from ₦1,935 to ₦1,900, while Prudent and Rain Oil in Warri each cut their prices by ₦10 to ₦1,940.
A petroleum products marketer said the latest depot reductions could eventually lead to lower pump prices, but warned that the adjustment may not happen immediately across all filling stations.
“The latest depot reductions are expected to put pressure on filling stations to review their pump prices, particularly outlets buying directly from the affected depots or replenishing their stocks at the new lower rates,” he said.
“However, motorists may not see an immediate or uniform reduction. Stations still holding products purchased at higher prices may maintain existing pump prices until those stocks are depleted and replaced with cheaper supplies.”
The marketer explained that competition among filling stations could also influence how quickly lower depot prices reach consumers, particularly in areas where several outlets operate close to one another.
“Where retailers begin buying at the lower depot rates, competition among filling stations could encourage downward adjustments, especially in areas where several outlets operate within close proximity,” he said.
However, he cautioned that a reduction of ₦20 to ₦24 at some Lagos depots should not automatically translate into the same reduction at filling stations.
“The extent of any reduction will also depend on transportation costs, operating expenses and retail margins. Consequently, the N20–N24 decline recorded at some Lagos depots should not be interpreted as an automatic N20–N24 reduction at the pump.”
The marketer added that sustained lower energy costs could have wider benefits for the Nigerian economy, particularly by reducing some of the pressure on businesses and consumers.
Meanwhile, international crude oil prices also recorded declines. West Texas Intermediate (WTI) fell by $1.03, or 1.12 per cent, to $91.34 per barrel, while Brent crude declined by $0.29, or 0.29 per cent, to $100 per barrel.
The marketer, however, warned that crude prices, exchange-rate movements and supply costs could still influence the direction of petrol prices in the coming days.
