Nigeria’s downstream petroleum market has witnessed another round of petrol price reductions after Dangote Petroleum Refinery and several major fuel marketers lowered their depot prices amid growing pressure from the Federal Government for retail fuel prices to better reflect falling global crude oil prices.
The latest adjustments followed a high level stakeholders’ meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), where the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urged industry operators to align domestic petrol prices with prevailing international market conditions. He argued that while marketers responded quickly when crude oil prices surged, consumers should also benefit now that Brent crude has fallen below 70 dollars per barrel.
Following the meeting, Dangote Refinery reduced its Lagos ex depot price for Premium Motor Spirit (PMS) by ₦3 per litre to ₦1,076, while maintaining its diesel price at ₦1,500 per litre. Other major depots also announced price cuts in response to increasing competition within the downstream market. NIPCO reduced its petrol price to ₦1,076 per litre, while Pinnacle, Sahara, AIPEC and African Terminal lowered their prices to about ₦1,075 per litre. Aiteo retained its existing price of ₦1,075 per litre.
Diesel prices also declined across several depots. Rain Oil reduced its diesel price by ₦15 per litre to ₦1,430, while Ibeto, Duport and Ibachem matched the same price level. In Port Harcourt, Matrix recorded one of the biggest reductions by cutting diesel prices by ₦55 per litre, while marketers in Calabar and Warri also announced fresh price reductions for both petrol and diesel.
The Federal Government maintained that although Nigeria operates a fully deregulated petroleum market, deregulation should not result in excessive profiteering. According to the minister, the Petroleum Industry Act empowers regulators to promote fair pricing and ensure consumers benefit from favourable market developments. He added that discussions with marketers would continue until a sustainable pricing framework is achieved.
The Chief Executive of NMDPRA, Rabiu Umar, also said there was a noticeable disconnect between declining international crude oil prices and domestic petrol prices. He expressed optimism that continued engagement between regulators and industry operators would lead to more competitive pump prices while preserving market stability.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) believes petrol prices could fall below ₦800 per litre in the future as more independent marketers begin sourcing products directly from Dangote Refinery. The association said it has already reduced pump prices in several parts of the country and expects additional reductions as product acquisition costs continue to decline.
Industry analysts say the latest depot price adjustments reflect stronger competition, increased domestic refining capacity and improved product availability. If the downward trend in global crude oil prices continues, motorists and businesses could see further reductions in petrol pump prices, providing relief for households and helping to moderate transportation and production costs across the economy.
SOURCE: VANGUARD
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