Emmanuel OchayiThe price of Premium Motor Spirit (PMS), commonly known as petrol, has dropped to N925 per litre at private depots. This reduction follows Dangote Petroleum Refinery’s decision to lower its ex-depot price from N950 to N890 per litre, effective from Saturday as reported by Prime Business Africa.
Depot operators across the country have adjusted their rates, leading to a price reduction of up to N27 per litre from last Friday’s rates. However, the decline has left many marketers counting losses, as they had earlier purchased petrol at higher prices.
Join our WhatsApp ChannelMarketers Face Huge Losses
Petroleum marketers who bought fuel before the price reduction are now selling below their purchase cost. Some have reported losses running into millions of naira.
A depot operator in Lagos, who preferred to remain anonymous, said, “Many of us are in trouble. We bought fuel at N950 or more, and now we must sell at lower prices. There is no way to recover the difference.”
Another marketer, Mr. Adebayo Oke, confirmed the losses. “The sudden drop in petrol price is good for consumers, but it is a huge setback for marketers who had stocked up at higher prices. We are now forced to sell at a loss just to clear our stock.”
READ ALSO: Dangote Refinery Reduces Petrol Price To N890/Litre
Depot Price Reductions
Data obtained by our correspondent showed that private depots have adjusted their prices following Dangote’s price reduction. Several major depots across the country have revised their petrol prices:
- Nipco Depot: N935 per litre, down from N952
- Chipet Depot: N935 per litre, down from N945
- Aiteo Depot: N925 per litre, down from N942
- Wosbab Depot: N930 per litre, down from N947
- Rain Oil Depot: N935 per litre, down from N947
- Matrix Depot (Warri): N960 per litre, down from N970
- AYM Shafa (Warri): N960 per litre, down from N970
- Zone 4 Depot (Calabar): N950 per litre, down from N958
- Alkanes Depot: N949 per litre
- Northwest Depot: N950 per litre
Despite these price reductions at depots, retail petrol prices at filling stations are yet to reflect the changes.
Expert Reacts To The Price Drop
Oil and gas expert, Olatide Jeremiah, has attributed the petrol price reduction to increased competition in the downstream sector.
“Dangote refinery’s decision to reduce its petrol price to N890 has forced private depots and importers to follow suit. His refining capacity and gantry loading have made him a market leader in the sector,” Jeremiah said.
He added, “The era of price manipulation and hoarding is over. With Dangote’s strong presence, other players have no choice but to adjust prices to remain competitive.”
Call For Regulatory Intervention
Jeremiah also urged regulatory authorities to ensure that filling stations reflect the depot price reductions immediately.
“The regulatory authority must step in to monitor filling stations closely. If depot prices are dropping, the retail price should also go down immediately. Nigerians should not have to pay higher prices when the wholesale cost has already decreased,” he stated.
Petrol consumers are now hopeful that the price drop at depots will soon translate into lower prices at fuel stations across the country. However, marketers who bought petrol at higher prices are left struggling to manage their financial losses.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
