Six private depots slash petrol prices to compete with Dangote Refinery
By Aboki Forex —
Six private depot operators have cut petrol prices, bringing their rates closer to Dangote Refinery's N1,165 per litre. The reductions come 48 hours after the Lekki-based refinery announced a N50 cut on petrol and diesel, intensifying competition in Nigeria's downstream petroleum market.
Depot rates after the cut
Pivot is selling petrol at N1,179 per litre, while Bulk Strategic and Integrated have adjusted their rates to N1,180 per litre. NIPCO Lagos has gone lower, offering petrol at N1,168 per litre, just N3 above Dangote's current price.
Not every operator joined the price cut. Soroman increased its PMS price by N22, moving from N1,182 to N1,200 per litre. The adjustments show that depot operators are feeling the pressure to match the refinery's competitive pricing as buyers become more sensitive to cost.
More cuts on the way
Industry experts say the latest reductions may not be the end of the price battle. They expect additional cuts as more vessels carrying petroleum products arrive at Nigerian ports, increasing supply and putting pressure on wholesale prices.
Global crude oil prices are also falling. Brent crude was reported at $82.60 per barrel, WTI at $77.59 and Murban at $81.10. These falling benchmarks are adding to the pressure on depot operators.
The 700,000-barrel-per-day Dangote Refinery is currently offering petrol at N1,165 per litre. Independent operators are adjusting to prevent customers from switching suppliers. Industry watchers say some depots could eventually cut prices below Dangote's rate, as operators previously did in the diesel market.
Consumers may feel the impact
For Nigerian motorists, the unfolding competition could become significant if the wholesale price reductions are passed down to filling stations, potentially bringing relief at the pump.
Dangote and Pinnacle are already selling petrol at the lowest rate of N1,166 per litre among various depots. Imported petrol costs N170 more than Dangote fuel, according to earlier reports. Dangote has also started delivering petrol without charge to marketers in six states, a move aimed at enhancing accessibility and affordability across Nigeria.