The Dangote Petroleum Refinery and several major petroleum marketers on Monday reduced their depot prices for Premium Motor Spirit (PMS), popularly known as petrol, in response to growing competition and renewed government pressure for retail prices to reflect the decline in global crude oil prices.
The latest adjustments came shortly after the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, met with key players in the downstream petroleum sector to discuss cost-reflective pricing under Nigeria’s deregulated fuel market.
The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), brought together representatives of the Dangote Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
According to the latest depot pricing data, Dangote Refinery reduced its Lagos ex-depot petrol price by N3 per litre, bringing it down from N1,079 to N1,076 per litre, while retaining its diesel price at N1,500 per litre.
Several other marketers also announced price cuts.
NIPCO lowered its depot price by N2 to N1,076 per litre, while Pinnacle reduced its price by N3 to N1,075 per litre. Sahara, AIPEC and African Terminal each cut petrol prices by N4, selling at N1,075 per litre, while Aiteo maintained its existing price of N1,075 per litre.
Diesel prices also recorded downward adjustments at a number of depots. Rain Oil reduced its Automotive Gas Oil (AGO) price by N15 to N1,430 per litre, while Ibeto, Duport and Ibachem also lowered their diesel prices to N1,430 per litre. Dangote Refinery, however, retained its diesel price.
In Port Harcourt, Matrix recorded one of the sharpest adjustments, reducing its petrol price by N8 to N1,087 per litre and cutting diesel by N55 to N1,465 per litre. Sigmund also reduced its petrol price by N12 to N1,082 per litre, although it increased its diesel price slightly by N2 to N1,463 per litre.
Similar reductions were reported in other parts of the country. In Calabar, Fynfield cut its petrol price by N7 to N1,090 per litre, while Soroman reduced its price by N5 to the same level.
In Warri, Matrix and Prudent both lowered petrol prices by N5 to N1,085 per litre. Prudent also reduced its diesel price by N25 to N1,475 per litre, while A.Y.M. Shafa cut its diesel price by N3 to N1,455 per litre.
Industry observers attributed the latest reductions to increased competition among suppliers, improved domestic refining capacity and relatively stable international crude oil prices.
Addressing stakeholders after the meeting, Lokpobiri said current retail petrol prices no longer reflected prevailing global crude oil prices, noting that Brent crude had fallen below $70 per barrel.
He stressed that while the Federal Government remained committed to a deregulated downstream market, deregulation should not be used to justify excessive profit margins at the expense of consumers.
According to the minister, fuel prices rose rapidly when crude oil traded above $100 per barrel, and marketers should likewise adjust prices downward now that international oil prices have declined.
Lokpobiri disclosed that discussions with industry stakeholders were productive and would continue until an acceptable pricing framework was achieved.
He said marketers acknowledged the concerns raised and agreed to explore practical measures that would ensure consumers benefited from lower crude oil prices.
Also speaking, the Chief Executive of the NMDPRA, Mallam Rabiu Umar, said the engagement became necessary because domestic petrol prices had remained largely unchanged despite falling crude oil prices.
He maintained that deregulation should encourage efficiency and fair competition rather than market distortions, adding that the regulator remained committed to protecting consumer interests while ensuring the sustainability of the downstream sector.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that petrol prices could fall below N800 per litre once independent marketers begin sourcing products directly from the Dangote Petroleum Refinery.
IPMAN National President, Abubakar Garima, said the association had already reduced pump prices by about N125 per litre nationwide and pledged to implement further reductions whenever product acquisition costs decline.