The average pump price of petrol supplied by private depots and the Dangote Refinery dropped slightly on Tuesday to N880.5 per litre from N881.5, as growing competition continued to shape Nigeria’s downstream oil sector.
According to Vanguard, several private depot operators, including Matrix, A.Y.M Shafa, and Sigmund Zamson, which mainly operate in Warri, Delta State, and Calabar, Cross River State, adjusted their selling price from N890 to N889 per litre.
Likewise, the Dangote Petroleum Refinery trimmed its gantry price to N872 per litre, down from N873, while Pinnacle maintained its rate at N872 per litre.
According to the Major Energies Marketers Association of Nigeria, the latest average landing cost of Premium Motor Spirit stands at N829.77 per litre, representing a 5.69% reduction from the Dangote refinery’s previous gantry price of N877 per litre.
However, the benefits of this price cut are yet to reflect at retail outlets. Filling stations such as MRS, Ardova, and NNPC Limited still sell between N920 and N922 per litre across Lagos, reports show.
Analysts attribute the persistent high retail price to challenges in the foreign exchange market, where the U.S. dollar trades at around N1,443.77 in the black market.
In its latest Energy Bulletin published online, MEMAN explained that the decline was based on a Brent crude oil benchmark of $67.02 per barrel.
The bulletin added, “The average 30 days report for PMS stood at N829.77, while the Spot (ASPM) at N815.38 per litre and Spot (NPSC-NOJ) at N815.40 per litre.
That of AGO for an average 30 days stood at N974.50 per litre with the Spot at N971.80 per litre. ATK for an average 30 days at N962.53 per litre and Spot price at N983.53 per litre.”
National President of the Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, said the price adjustments were a natural outcome of deregulation.
“The downstream sector has been deregulated and competition should be expected. It is expected that the competition will present more options for consumers in the domestic market,” Obasi noted.
