In a major petrol depot price slash in Nigeria, six depot owners have significantly reduced the prices of Premium Motor Spirit (PMS), also known as petrol, as intense competition sweeps through the downstream sector of the Nigerian petroleum industry.
Depot operators, Emadeb, First Royal, MENJ, Aiteo, Pinnacle, and Hyde, slashed their petrol prices in a coordinated response to market realities and growing consumer price sensitivity. This move is expected to trigger further market shifts in the coming weeks.
Price Adjustments Across Depots
According to market data from Petroleumprice.ng, Emadeb made the most dramatic adjustment, cutting depot price from N903 to N827 per litre, a reduction of N76. First Royal also lowered its price to N826 per litre from N828.
Other notable reductions include:
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MENJ: From N827 to N826 per litre
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Aiteo: From N826 to N825 per litre
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Pinnacle: From N856 to N850 per litre
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Hyde: From N869 to N868 per litre
These reductions bring depot prices closer to Dangote Petroleum Refinery’s current gantry price of N825 per litre, signalling strong price competition within the sector.
Why Prices Are Dropping
The petrol depot price slash in Nigeria is tied to several key market dynamics. First, the global crude oil market has seen prices stabilize at around $65 per barrel, leading to a downward cost trend in petrol production. Crude oil is a major feedstock in refining PMS, so cheaper feedstock results in more affordable fuel downstream.
In addition, the ongoing influx of imported petrol by private depots has created a saturated market. With large inventories and slow consumer demand due to high retail prices, depot owners are slashing prices to stimulate sales and maintain market share.
Expert Opinions on the Price Movement
An industry expert, speaking on condition of anonymity, said stakeholders are closely watching the Dangote Petroleum Refinery for a potential downward review in its gantry prices.
“With the market aligning closely with Dangote’s current N825 price, the refinery may be compelled to lower its prices further to maintain a competitive edge,” he noted.
Meanwhile, Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), provided broader context.
“The depot owners imported commercial quantities of petrol. Without downward adjustment, selling in the domestic market would have been nearly impossible. This is a natural response to competition in the market,” he explained.
He, however, cautioned that while price cuts are welcome, excessive competition could destabilize the sector.
“We need healthy competition, one that benefits consumers without endangering the sustainability of the supply chain,” he added.
Dangote Refinery’s Strategic Price Positioning
Recently, Dangote Petroleum Refinery & Petrochemicals reaffirmed its commitment to price stability despite global market volatility.
In a statement signed by Anthony Chiejina, Group Chief Branding and Communications Officer, the company said:
“We remain committed to supporting the Nigerian economy by maintaining stable petrol prices to ease the burden on consumers.”
This positioning from Africa’s largest refinery underscores a growing trend of price moderation in Nigeria’s fuel market, which could help curb inflationary pressure and improve business margins, especially in transport and logistics.
What This Means for Consumers and the Economy
For everyday Nigerians, the petrol depot price slash in Nigeria could translate into lower pump prices, if retailers reflect depot cuts in retail pricing. This, in turn, could lead to reduced transportation costs, lower food prices, and a slight improvement in household disposable income.
Moreover, consistent competition in the sector might encourage operational efficiency among depot owners and push the government to fast-track regulatory clarity in the downstream oil space.
