The Dangote Petroleum Refinery and other petroleum marketers have reduced their depot prices for Premium Motor Spirit (PMS), commonly known as petrol, across major Nigerian cities as international crude oil prices weakened. The latest reductions were recorded in Lagos, Port Harcourt, Calabar and Warri, with Lagos witnessing some of the biggest cuts as operators adjusted prices by as much as N25 per litre.
In Lagos, the Dangote Refinery reduced its petrol depot price from N1,350 to N1,325 per litre, while Ascon, Integrated, Pinnacle and Sahara lowered their prices by N24 to between N1,326 and N1,327 per litre. MRS also reduced its price by N20 to N1,332 per litre, while Wosbab’s petrol price stood at N1,330. The adjustments came as Brent crude slipped below the $100 mark, while the US benchmark, West Texas Intermediate (WTI), fell to $91.17 per barrel.
The price cuts were not limited to Lagos. In Port Harcourt, Masters reduced its PMS price by N2 to N1,328 per litre, while Stockgap cut its price by N7 to N1,323. Calabar recorded an even lower depot price, with Mainland reducing its petrol price by N7 to N1,320 per litre. Meanwhile, marketers in Warri also recorded mixed movements, although several operators reduced their prices. The changes highlight how movements in the international oil market are increasingly feeding into Nigeria’s downstream petroleum market.
The softer crude prices also affected diesel, with some marketers reducing Automotive Gas Oil (AGO) prices across the locations covered. In Lagos, Chipet cut diesel by N15 to N1,815 per litre, while Ascon, Duport and Integrated reduced theirs by N5. Port Harcourt recorded a N35 reduction from Masters to N1,900 per litre, while Matrix in Warri cut its diesel price by N50 to N2,000. However, crude markets remained volatile, with Murban crude moving in the opposite direction to Brent and WTI by rising to $114.20 per barrel.
For Nigerian motorists, the latest depot price reductions could provide some relief if the lower wholesale costs are reflected at filling stations. However, retail petrol prices will continue to depend on crude oil prices, foreign exchange movements, transportation expenses and individual marketers’ margins. Petrol currently sells between N1,370 and N1,450 per litre in different locations, meaning consumers may have to wait for further stock replenishment before any additional changes become visible at the pump.
source: punch