Nigeria's downstream petroleum market recorded another round of price adjustments on Monday as the Dangote Petroleum Refinery and several major fuel marketers reduced their depot prices for Premium Motor Spirit (PMS), commonly known as petrol, amid sustained government engagement and increasing market competition.
The latest reductions followed renewed efforts by the Federal Government to ensure that domestic petrol prices align more closely with the decline in global crude oil prices and improved local refining capacity.
Speaking during a stakeholders' meeting on cost-reflective pricing of PMS convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said current pump prices no longer reflect prevailing realities in the international oil market.
The meeting was attended by representatives of the Dangote Petroleum Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot 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).
According to Vanguard, latest depot pricing showed that Dangote Refinery reduced its ex-depot petrol price in Lagos by ₦3 per litre, bringing it down from ₦1,079 to ₦1,076 per litre, while retaining its diesel price at ₦1,500 per litre.
The adjustment was mirrored by other marketers seeking to remain competitive in the increasingly dynamic downstream market.
NIPCO reduced its depot price by ₦2 to ₦1,076 per litre, while Pinnacle lowered its rate by ₦3 to ₦1,075 per litre. Sahara, AIPEC and African Terminal each cut their petrol prices by ₦4, also settling at ₦1,075 per litre. Aiteo maintained its existing price of ₦1,075 per litre.
Diesel prices also declined across several depots. Rain Oil reduced its Automotive Gas Oil (AGO) price by ₦15 to ₦1,430 per litre, while Ibeto, Duport and Ibachem aligned their prices at the same level. Dangote Refinery, however, left its diesel price unchanged at ₦1,500 per litre.
In Port Harcourt, Matrix recorded one of the biggest price adjustments, cutting petrol by ₦8 to ₦1,087 per litre and reducing diesel by ₦55 to ₦1,465 per litre. Sigmund also lowered its petrol price by ₦12 to ₦1,082 per litre, although it raised its diesel price slightly by ₦2 to ₦1,463 per litre.
Other regional depots also implemented reductions. In Calabar, Fynfield reduced petrol prices by ₦7 to ₦1,090 per litre, while Soroman trimmed its rate by ₦5 to the same price.
Similarly, Matrix and Prudent in Warri cut petrol prices by ₦5 each to ₦1,085 per litre. Prudent also reduced diesel by ₦25 to ₦1,475 per litre, while A.Y.M. Shafa lowered its diesel price by ₦3 to ₦1,455 per litre.
Industry observers attributed the latest price adjustments to stronger competition among suppliers, improved domestic refining output and the sustained stability of international crude oil prices.
Addressing stakeholders after the meeting, Lokpobiri stressed that although the petroleum market had been deregulated, operators must avoid practices that amount to excessive profiteering.
He noted that petrol prices rose swiftly when Brent crude traded above $100 per barrel, arguing that the recent decline in crude prices to below $70 per barrel should equally be reflected in pump prices.
According to the minister, discussions with marketers have been productive, with all parties agreeing to continue consultations aimed at achieving fair and cost-reflective petrol pricing for Nigerian consumers.
Also speaking, the Chief Executive of the NMDPRA, Mallam Rabiu Umar, said the regulator convened the meeting because domestic petrol prices had not responded proportionately to the sustained decline in international crude oil prices.
He maintained that while deregulation allows market forces to determine prices, it does not permit exploitative pricing practices, adding that consumer protection remains a core responsibility of the regulator.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that petrol prices could fall below ₦800 per litre once its members begin sourcing products directly from the Dangote Petroleum Refinery.
IPMAN National President, Abubakar Garima, said independent marketers have already reduced pump prices by about ₦125 per litre in many parts of the country and pledged to implement further reductions whenever procurement costs decline.
The latest price adjustments are expected to intensify competition in the downstream petroleum market and could pave the way for lower retail pump prices in the coming weeks if crude oil prices remain stable and supply conditions continue to improve.
