Petrol Depot Prices Drop to N1,350 as FG Proposes Price Ceiling

Petrol depot prices in Lagos, Port Harcourt and Calabar fell to N1,350 per litre on Friday, October 9, after the Federal Government proposed a ceiling on landing and ex-gantry costs. Several depots in Warri, however, held on to higher rates.

Price data collected across major depot locations showed Nipco, Honeywell, Ardova and Prudent depots in Lagos quoting N1,350 per litre. Masters depot and Northwest depot in Calabar listed petrol at the same price.

In Port Harcourt, TSL and Sigmund depots, which had earlier quoted N1,355 per litre, reduced their prices to N1,350. But five depots in Warri, Rain Oil, Parker, Optima, Keonamex and Nepal, continued to list Premium Motor Spirit (PMS) at N1,360 per litre, N10 above the proposed ceiling.

What the government proposed

The depot adjustments followed an announcement by the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, that the federal government was negotiating a N1,350-per-litre ceiling on petrol landing and ex-gantry costs.

Under the arrangement, refiners and importers would temporarily absorb costs above the ceiling and recover the difference later as market conditions improve. The government has maintained that the measure does not represent a return to the petrol subsidy removed in 2023.

Instead, it is being considered as a temporary step to cut price volatility amid elevated global oil prices. If implemented, the arrangement could help limit increases in petrol costs while allowing refiners and importers to recover additional expenses under the agreed terms.

NNPC discount scheme

The Federal Government also announced a 30-day petrol discount through NNPC retail outlets to ease the burden of rising fuel costs.

Public transport operators are expected to receive priority under the initiative, while NNPC plans to forgo its retail profit margin to reduce pump prices for customers. The measures are intended to cushion households, businesses and transport operators against the impact of rising fuel costs.

Uneven prices persist

Despite the announcements, depot prices remain uneven across the surveyed locations. While several depots in Lagos, Port Harcourt and Calabar listed petrol at N1,350 per litre, the five depots in Warri continued to quote N1,360.

The gap highlights the different prices charged by depot operators as the government pursues measures to moderate fuel costs.

The final impact on motorists will depend on the terms of the proposed price arrangement, how it is implemented and whether the savings are passed on to consumers at filling stations. For businesses already battling high energy and transport costs, the depot adjustments offer little relief until they show up at the pump.