Petrol Loading Cost Drops to N925 Per Litre at Private Depots Following Dangote Refinery Price Slash
The loading cost of Premium Motor Spirit (PMS) at private depots fell to N925 per litre on Monday, reflecting a downward trend in fuel prices across Nigeria’s downstream sector. This marks a N27 reduction from the N952 per litre offered by the highest-selling depot last Friday.
The price drop follows the Dangote Petroleum Refinery’s recent decision to cut its ex-depot price from N950 to N890 per litre, effective Saturday, February 1, 2025. Industry experts say this move has significantly influenced private depot operators, compelling them to review their prices downward.
Marketers Count Losses Amid Sudden Price Adjustment
While consumers anticipate a reduction in pump prices, some petroleum marketers who purchased fuel at higher prices before the adjustment are now at risk of incurring huge losses. Many may be forced to sell below cost, resulting in debts running into millions of naira.
A market analysis of fuel price movements at various depots revealed significant reductions across major suppliers:
- Nipco Depot dropped from N952 to N935 per litre.
- Chipet Depot reduced from N945 to N935 per litre.
- Aiteo Depot slashed prices from N942 to N925 per litre.
- Wosbab Depot adjusted prices from N947 to N930 per litre.
- Rain Oil Depot reduced from N947 to N935 per litre.
- Matrix Depot in Warri lowered from N970 to N960 per litre.
- AYM Shafa Depot adjusted from N970 to N960 per litre.
- Zone 4 Depot in Calabar reduced from N958 to N950 per litre.
- Alkanes Depot sold at N949, while Northwest Depot sold at N950 per litre.
Expert Weighs In on Market Trends
Reacting to the development, oil and gas expert Olatide Jeremiah noted that the price reduction was expected, given the impact of Dangote Refinery’s growing dominance in the market.
“Dangote refinery’s reduction of petrol to N890 per litre has forced private depots and importers to cut their prices immediately. His refining capacity and loading operations have made him the market leader in the downstream sector. The era of hoarding and price manipulation is over as competition has compelled all players to adjust,” he stated.
Jeremiah further urged the regulatory authorities to enforce price adjustments at filling stations, ensuring that depot price reductions translate to immediate relief at the pump for consumers.
Despite the lower depot costs, the retail price of petrol remains largely unchanged. Nigerians now await whether this downward trend will reflect at fuel stations nationwide.