Marketers mentioned that this drop was largely due to the Dangote Petroleum Refinery cutting its ex-depot price of PMS from N950 to N890 per litre starting Saturday.
However, this change has hit many petroleum marketers hard, especially those who purchased products at the higher price. Some marketers who bought petrol just hours before the announcement will have to sell at a loss, leading to debts in the millions of naira.
On another note, data collected by our correspondent shows that petrol prices have significantly decreased across all depots, although this hasn’t yet affected the retail price. Nipco Depot lowered its price to N935 from N952 per litre last Friday, while Chipet dropped its price to N935 from N945. Aiteo also cut its price to N925 from N942.
Wosbab Depot has lowered its petrol price to N930 from N947, and Rain Oil Depot has also adjusted its price to N935, down from N947, which was the price last Friday.
In Warri, Matrix has cut its price to N960 from N970 per litre, while AYM Shafa has also dropped its price to N960 from N970.
Over in Calabar, Zone 4 depot has decreased its price by N8, bringing it down to N950 from N958 per litre. Alkanes is selling at N949, and Northwest is at N950.
Oil and gas specialist Olatide Jeremiah predicted this price decrease. He stated that Dangote refinery's reduction of petrol prices to N890 has compelled private depots and importers to swiftly reduce their fuel prices, citing Dangote's refining and loading capacity as establishing market leadership in the downstream sector. He further asserted that the era of price manipulation and hoarding is concluded, with resulting competition driving lower pump prices.
He also urged the regulatory authority to ensure that filling stations are fully regulated so that the ongoing price reductions at depots are immediately mirrored at the pump.