Petrol Prices Drop Across Nigeria as Marketers Announce New Rates Following Global Crude Decline
Petrol prices have experienced a significant drop across major depots in Nigeria over the past week, including at the Dangote Petroleum Refinery. This adjustment comes in response to a decline in global crude oil prices, which eased following a ceasefire agreement between the United States and Iran. The changes have provided much-needed relief to the downstream market and halted any upward adjustments at retail filling stations.
Ex-Depot Price Adjustments in Key Regions
Private depot owners and marketers have revised petrol prices downward in key regions across the country. The ex-depot price, which is the cost of petroleum products sold to marketers before transportation to retail outlets, saw notable reductions. According to reports from Petroleumprice.ng, at the start of the trading week on April 7, depot prices were elevated, with Lagos averaging N1,225 per litre, Port Harcourt at N1,235 per litre, Warri at N1,242 per litre, and Calabar at N1,240 per litre.
By the end of the week on Friday, April 11, prices had dropped to an average below N1,230 per litre nationwide. Specifically, in Lagos, private depot owners such as Aiteo, Nipco, and A.A. Rano sold petrol between N1,208 and N1,210 per litre during the week. In Port Harcourt, Sigmund and Bulk Strategic adjusted prices to a range of N1,223 to N1,225 per litre.
Similarly, in Warri, depots including Matrix, Danmarna, and A.Y.M. Shafa priced petrol for marketers between N1,234 and N1,235 per litre. In Calabar, operators like Wabeco, Sobaz, and Soroman sold at N1,223 per litre. These reductions reflect the immediate impact of the global crude oil price easing on the Nigerian market.
Retail Impact and Dangote Refinery's Pricing Moves
At the retail level, the price drop is already being felt in some locations. Checks by Legit.ng indicated that MRS and NNPC filling stations are both selling petrol at N1,245 per litre, maintaining consistency with previous rates. This stability at the pump offers a reprieve to consumers amid fluctuating market conditions.
During the week, there were reports that Dangote refinery had increased its petrol prices by N75 to N1,275 per litre, but this was quickly reversed to N1,200. A senior official from the refinery explained that pricing decisions are influenced by global crude benchmarks and prevailing market conditions. The official stated, "The adjustment of prices is in line with global market trends. External factors, including tensions in the Middle East, directly impact refined product pricing." However, Dangote refinery later denied that any such increase had been implemented.
World Bank Report on Imported Petrol Costs
In related news, the World Bank recently highlighted in its Nigeria Development Update that imported Premium Motor Spirit (PMS) is currently about 12% cheaper than petrol supplied by the Dangote Petroleum Refinery. The report, released in Abuja on Tuesday, April 7, pointed out that this disparity reflects distortions in Nigeria's domestic pricing framework, exacerbated by rising global crude oil prices and shifting market dynamics.
This development underscores the complex interplay between international crude oil markets and local fuel pricing in Nigeria. As global tensions ease and crude prices drop, Nigerian consumers and marketers alike benefit from reduced costs, though challenges in pricing parity between imported and locally refined products persist.
