Depot Fuel Prices Drop As Dangote Leads Price Slash

The price of Premium Motor Spirit (PMS) at private depots in Nigeria has dropped following a price cut by Dangote Petroleum Refinery.

The refinery reduced its ex-depot price from ₦950 to ₦890 per litre, leading to a decrease in loading costs across the country.

A survey of private depots showed that Nipco Depot lowered its price to ₦935 per litre from ₦952, while Chipet Depot reduced its rate to ₦935 from ₦945. Aiteo slashed its price to ₦925 from ₦942, and Wosbab Depot now sells at ₦930 instead of ₦947. Rain Oil Depot also cut its price to ₦935 from ₦947.

In Warri, Matrix Depot and AYM Shafa both adjusted their rates to ₦960 per litre from ₦970. In Calabar, Zone 4 Depot reduced its price to ₦950 from ₦958, while Alkanes Depot now sells at ₦949 per litre. Northwest Depot has also adjusted its price to ₦950 per litre.

Despite the reductions at depots, retail pump prices remain the same. Many fuel marketers who purchased at higher prices before the cut are struggling to sell without making losses. Some marketers expressed frustration, saying the price drop happened just hours after they bought fuel at a higher rate.

Oil and gas expert Olatide Jeremiah explained that the price reduction was expected due to Dangote Refinery’s influence. He said, “Dangote refinery’s reduction of petrol to ₦890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in refining and gantry loading has earned him the market leader in the downstream sector.”

He added that market forces are now forcing competitors to lower their prices, signaling an end to hoarding and price manipulation. “The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through the reduction of fuel at the pump,” he stated.

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