Filling stations in parts of Lagos and Ogun states have reduced the price of petrol to an average of N1,205 per litre as of Sunday. The reduction followed the cut in petrol gantry prices by the Dangote Petroleum Refinery last week.
Checks by our correspondent showed that several filling stations along the Lagos-Ibadan Expressway lowered their pump prices from an average of N1,280 per litre in a bid to remain competitive.
It was observed that stations with lower petrol prices attracted more customers than those selling at higher rates. The SGR filling station in Mowe had the lowest pump price, selling petrol at N1,199 per litre as of Saturday.
NIPCO, SAO, AP and MRS sold petrol at N1,205 per litre. Mobil filling stations dispensed the product at N1,220 per litre, while Heyden displayed N1,285 per litre in Iperu and N1,210 per litre in Ibafo, highlighting the competition along the highway. Retail outlets owned by the Nigerian National Petroleum Company Limited also sold Premium Motor Spirit at N1,245 per litre.
Last week, petrol and diesel prices began to decline as global crude oil prices retreated following the de-escalation of tensions in the Middle East. The reductions, led by the Dangote refinery and followed by some private depot operators, raised expectations of further cuts in fuel prices, although marketers said the adjustments would be gradual to avoid significant losses on existing stock.
Following the drop in crude oil prices from a high of $120 per barrel during the United States-Iran conflict to about $80 per barrel after a peace deal was reached, the Dangote refinery reduced its petrol gantry price by N75 per litre. Pump prices had risen from N830 to over N1,300 per litre during the crisis.
As crude oil prices declined following the peace agreement between the United States and Iran, the Dangote refinery cut its petrol gantry price from N1,250 per litre to N1,175 per litre.
The reduction prompted some private depot operators to lower their prices to about N1,180 per litre on Tuesday.
Meanwhile, data from petroleumprice.ng showed that the Dangote refinery had reduced its diesel gantry price by N100, bringing it down to N1,500 per litre in its latest adjustment amid sustained downward pressure in Nigeria’s downstream market.
The reduction represents a 6.25 per cent decrease from the previous N1,600 per litre price and marks the second diesel price review within one week, following an earlier adjustment on June 16.
However, many Nigerians argued that the reductions did not adequately reflect the sharp decline in crude oil prices.
Reacting, a source within the Dangote Group told our correspondent that the refinery was still monitoring market developments while processing crude purchased during the period of heightened prices. The source added that those criticising the refinery for not reducing prices more aggressively might not fully understand the dynamics of the oil business.
“Crude prices are still swinging. People making such comments are either insincere or they don’t know the business. Let them go and check the prices all over Africa or the world,” the source said, adding that prices could still drop to as low as N900 per litre, “but we still have the expensive crude in our tanks”.
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