Six major petrol depot owners have cut the prices of Premium Motor Spirit (PMS), commonly known as petrol, as competition intensifies within Nigeria’s downstream petroleum industry.
The depots that implemented price reductions on Wednesday include Emadeb, First Royal, MENJ, Aiteo, Pinnacle, and Hyde.
Emadeb led the cuts by lowering its depot price from ₦903 to ₦827 per litre, while First Royal reduced its price slightly from ₦828 to ₦826 per litre. MENJ, Aiteo, Pinnacle, and Hyde also trimmed their prices to ₦826, ₦825, ₦850, and ₦868 per litre, respectively.
According to Petroleumprice.ng, petrol depot prices are expected to continue trending downward in the coming weeks due to the relatively low global crude oil price, which currently stands at around $65 per barrel.
An industry insider, who requested anonymity, noted that operators anticipate a further reduction in the gantry price set by the Dangote Petroleum Refinery.
“With depot prices now aligning closely with Dangote Refinery’s current gantry price of ₦825 per litre, it is likely the refinery will announce another price cut soon,” the source said.
Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), explained the rationale behind the price adjustments.
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“Depot owners imported significant commercial quantities of petrol from the global market. Without lowering prices, selling in the domestic market would be challenging. This price reduction reflects their response to increasing competition locally,” he said.
Dr. Gillis-Harry further warned, “While competition is beneficial for consumers and the sector, excessive rivalry could be detrimental.
A healthy balance of competition is essential to sustain the industry.”
Recently, Dangote Petroleum Refinery & Petrochemicals emphasized its commitment to price stability despite fluctuations in global crude oil prices.
In a statement signed by Group Chief Branding and Communications Officer Anthony Chiejina, the company highlighted efforts to support Nigeria’s economy by alleviating the burden of rising fuel costs for consumers through consistent pricing.
