Amid growing competition in Nigeria’s downstream petroleum sector, six depot operators have reduced the price of Premium Motor Spirit (PMS), popularly known as petrol. The depots—Emadeb, First Royal, MENJ, Aiteo, Pinnacle, and Hyde—slashed their rates to attract buyers and stay competitive in a tightening market. Notably, Emadeb made the largest cut, reducing its price from ₦903 to ₦827 per litre, while others made moderate reductions ranging between ₦1 to ₦8 per litre.
These price adjustments come at a time when global crude oil prices have dipped to around $65 per barrel, influencing lower production and distribution costs. Industry monitoring platform Petroleumprice.ng indicated that petrol prices may continue to decline in the short term due to the global oil market trends. Stakeholders are now closely watching the Dangote Refinery, whose current gantry price of ₦825 per litre is likely to come under pressure as competitors narrow the pricing gap.
An industry expert, speaking anonymously, noted that Dangote may be compelled to further lower its prices to remain the most attractive supplier. With several depot prices now matching or undercutting the refinery’s rate, the pressure is mounting on all players to review their pricing strategies, especially as consumers grow more price-sensitive.
Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), emphasized that depot owners had to respond to market realities by importing petrol at lower prices and adjusting their rates to remain viable. He warned, however, that while competition benefits consumers, excessive price wars could destabilize the industry if not managed prudently.
In response, Dangote Petroleum Refinery reaffirmed its commitment to price stability, stating it has consistently worked to alleviate the financial burden on Nigerian consumers. The company, through its spokesperson, reiterated its focus on economic support and national development, even amid volatile global oil prices. As the sector braces for further changes, healthy competition remains a key factor in driving affordability and sustainability.