Fuel Depot Prices Drop Again

Petrol and diesel depot prices dropped again on Monday as the Dangote Petroleum Refinery and several major fuel marketers reduced their selling prices following fresh discussions between the Federal Government and operators in the downstream oil sector.

The latest price cuts came as competition among suppliers continued to grow, with improved availability of refined petroleum products also contributing to the downward movement in prices.

Earlier in the day, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, met with stakeholders in the downstream sector and said the current pump price of petrol no longer reflects the sharp decline in global crude oil prices.

The meeting was organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). 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) attended the meeting.

Following the discussions, the latest depot pricing report showed that Dangote Refinery reduced its Lagos ex-depot petrol price by N3 per litre, bringing it down from N1,079 to N1,076 per litre. The refinery, however, left its diesel price unchanged at N1,500 per litre.

Other marketers also adjusted their prices to remain competitive. In Lagos, NIPCO reduced its petrol price by N2 to N1,076 per litre, while Pinnacle lowered its rate by N3 to N1,075 per litre. Sahara, AIPEC and African Terminal each reduced their petrol prices by N4 to N1,075 per litre. Aiteo maintained its existing price of N1,075 per litre.

Diesel prices also fell in several depots. Rain Oil cut its Automotive Gas Oil (AGO) price by N15 to N1,430 per litre. Ibeto, Duport and Ibachem also reduced their diesel prices to N1,430 per litre, while Dangote Refinery retained its diesel price at N1,500 per litre.

In Port Harcourt, Matrix reduced its petrol price by N8 to N1,087 per litre and lowered its diesel price by N55 to N1,465 per litre. Sigmund also reduced its petrol price by N12 to N1,082 per litre but raised its diesel price slightly by N2 to N1,463 per litre.

The downward adjustment extended to other parts of the country. In Calabar, Fynfield reduced its petrol price by N7 to N1,090 per litre, while Soroman lowered its price by N5 to the same level.

In Warri, Matrix and Prudent both 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.

Industry observers said the latest reductions were driven by stronger competition among suppliers, increased domestic refining and relatively stable international crude oil prices.

Speaking after the meeting, Lokpobiri said the Federal Government allowed market forces to determine petrol prices when crude oil prices rose sharply, but noted that the current fall in global oil prices should also be reflected in domestic fuel prices.

He explained that while Nigeria operates a deregulated petroleum market, deregulation should not lead to excessive profits at the expense of consumers. He added that the Petroleum Industry Act gives the NMDPRA the responsibility to prevent unfair pricing practices in the sector.

The minister said marketers acknowledged the concerns raised by the government and agreed to continue discussions on practical measures that would allow petrol prices to reflect changes in international crude oil prices.

The Chief Executive of the NMDPRA, Rabiu Umar, said the meeting became necessary because of the difference between falling crude oil prices and the current retail price of petrol in Nigeria.

He recalled that similar consultations had previously helped reduce the price of Liquefied Petroleum Gas (LPG) and expressed optimism that ongoing engagements would also benefit petrol consumers. He added that a deregulated market should protect both businesses and consumers through fair pricing.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said petrol prices could drop below N800 per litre once independent marketers begin buying products directly from the Dangote Petroleum Refinery.