Private Depots Crash Petrol Price by N27 After Dangote's Refinery Decision
- The cost of petrol at private depots has dropped by N27 to N925 per litre on Monday, down from N952 last Friday
- The development follows Dangote Refinery’s reduction of its ex-depot price to N890 per litre from N950
- Filling station owners will struggle to reduce their pump prices after recently buying from Dangote and private depots at high prices
- Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
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The loading cost of Premium Motor Spirit (PMS), commonly known as petrol at private depots has dropped to N925 per litre.
Industry reports from the Major Energies Marketers Association of Nigeria (MEMAN) confirm that the new depot price is decreasing by N27 from the N952 per litre rate marketers paid on Friday, January 31.
Source: Getty Images
MEMAN also revealed that the price of Automotive Gas Oil (Diesel) was reduced to N1,068.00 per litre, while the price of Jet Fuel also dropped to N1,075.00 per litre.
Legit.ng reported that the Dangote refinery has also dropped its ex-depot price from N890 per litre to N950.
Depots prices
This decision by Dangote Refinery to slash its prices had a ripple effect across the market, prompting other depots and importers to swiftly adjust their prices downward.
Punch reports revealed that various depots across the country have made adjustments to their prices.
It noted NIPCO Depot revised its selling price to N935 per litre from N952, while Chipet reduced its rate to N935 from N945.
Aiteo followed suit by cutting its costs to N925 from N942. Similarly, Wosbab Depot adjusted its price to N930 from N947, and Rain Oil Depot set its rate at N935 from the previous N947 per litre.
In Warri, Matrix and AYM Shafa both decreased their prices to N960 per litre from N970. Meanwhile, Zone 4 depot in Calabar reduced its price to N950 from N958 per litre, with Alkanes and Northwest also adjusting to N949 and N950, respectively.
Impact of drop in petrol prices
The reduction of ex-depot petrol prices according to Dangote refinery is due to changes in international crude oil prices.
Dangote said:
"This strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices.
"As part of Dangote Refinery’s unwavering commitment to transparency and fairness, this price revision reflects the ongoing fluctuations in global crude oil markets"
Impact of the changes
While the new prices will be welcomed by Nigerians as it means filling stations will adjust prices, it comes with substantial financial implications for many petroleum marketers who had procured their stock at higher costs before the announcement.
Some of these marketers now face the prospect of selling at a loss, potentially incurring debts amounting to millions of naira.
Marketers send messages to filling stations
Legit.ng reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked marketers to reduce petrol prices.
Billy Gillis-Harry, PETROAN president said there was a need for a smooth transition in retail pricing.
He added that many filling stations will find it challenging to adjust to the new price.
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Source: Legit.ng
