New Petrol Price Update As Brent Crude Climbs to $107 per Barrel
- Brent crude jumped above $107 per barrel on Monday, September 28, reversing a decline that had pushed depot fuel prices lower
- Several Lagos, Warri, Port Harcourt and Calabar depots cut petrol and diesel prices between September 21 and 25
- The crude rebound followed Iran's rejection of a seven-day truce proposal linked to the Strait of Hormuz
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerian fuel depot owners could face renewed pressure to raise petrol and diesel prices after international crude oil prices climbed back above $107 per barrel on Monday, September 28, reversing a week of declines at depots across the country.
Brent crude had risen $2.92, or 2.80%, to $107.20 per barrel, while West Texas Intermediate gained $2.27, or 2.46%, to reach $94.68.
Source: Getty Images
The jump came after Iran rejected a proposal for a seven-day ceasefire tied to reopening the Strait of Hormuz, a key route for global crude oil and petroleum-product shipments.
Depot prices fell sharply the previous week
The rebound follows a broad-based drop in depot prices between Monday, September 21, and Friday, September 25, when Brent had briefly dipped below $100 on hopes of diplomatic progress between the United States and Iran.
Data from Petroleumprice.ng showed that the average Premium Motor Spirit (PMS) price across monitored Lagos depots fell by N23.50 per litre over the period.
Sahara recorded the biggest cut, reducing its PMS price from N1,351 to N1,325 per litre. Pinnacle dropped from N1,350 to N1,325.50, while MRS Tincan moved from N1,352 to N1,332.
The average Lagos PMS price settled at N1,327.50, just N2.50 above Dangote Refinery's revised gantry price of N1,325 per litre.
Diesel prices recorded larger drops
The diesel market saw even steeper reductions.
Eterna cut its Automotive Gas Oil (AGO) price by N100 per litre, from N1,950 to N1,850, while Rain Oil reduced AGO from N1,950 to N1,900.
Integrated and Duport each moved from N1,820 to N1,790, while Ibachem fell from N1,815 to N1,790.
The average Lagos AGO price declined from roughly N1,860 to N1,824.36 per litre.
Outside Lagos, depots in Warri, Port Harcourt and Calabar also recorded cuts.
Source: Getty Images
In Warri, Matrix reduced PMS from N1,327 to N1,316, while Nepal moved from N1,330 to N1,315.
In Port Harcourt, Masters and TSL both cut PMS from N1,330 to N1,303, while Bulk Strategic reduced AGO from N1,928 to N1,890.
In Calabar, Alkanes lowered PMS from N1,327 to N1,310 per litre.
By Friday, some depots in Port Harcourt and Warri were selling petrol below Dangote Refinery's N1,325 per litre reference price, while some Lagos depots were quoting AGO below the refinery-linked level of N1,850.
Dangote refinery opens petrol sales to all marketers
Earlier, Legit.ng reported that Dangote Petroleum Refinery has opened the sale of petrol to all licensed marketers, ending its previous consortium marketing arrangement.
The move is expected to reshape competition in Nigeria's downstream petroleum sector.
All qualified marketers can now purchase products directly from its loading gantry, widening access to locally refined petrol.
Source: Legit.ng
