Diesel, Petrol Prices Fall As Depots Cut Rates

Petrol prices dropped by as much as ₦24 per litre at major depots in Lagos on Tuesday, raising expectations that filling stations may begin reducing their pump prices as they restock with cheaper products.

The reductions were also recorded in other parts of the country, although the cuts were smaller compared to Lagos, Naija News understands.

The development came as international crude oil prices recorded fresh declines, with both Brent crude and West Texas Intermediate (WTI) falling.

The latest depot price data also showed a sharper drop in the price of Automotive Gas Oil (AGO), commonly known as diesel, with prices falling by as much as ₦50 per litre in Warri and ₦35 in Port Harcourt.

According to a Vanguard report, in Lagos, Ascon, Integrated and Sahara depots reduced their petrol prices by ₦24 per liter, bringing them down from ₦1,351 to ₦1,327.

Pinnacle also reduced its price by ₦24, from ₦1,350 to ₦1,326 per litre.

MRS cut its price by ₦20, from ₦1,352 to ₦1,332 per litre.

However, Dangote Refinery retained its petrol price at ₦1,325 per litre.

In Port Harcourt, Ascon and Integrated reduced their petrol prices by ₦5 each, from ₦1,820 to ₦1,815 per litre.

Ibeto retained its price at ₦1,815 per litre.

In Calabar, Mainland reduced its price by ₦7, from ₦1,327 to ₦1,320, while Alkanes cut its price by ₦2, from ₦1,327 to ₦1,325 per litre.

In Warri, Keonamex reduced its petrol price by ₦3, from ₦1,330 to ₦1,327 per litre, while Nepal cut its price by ₦1, from ₦1,330 to ₦1,329.

Diesel Prices Fall Further

Naija News understands that the diesel market recorded bigger reductions than petrol. Matrix depot in Warri reduced its AGO price by ₦50, from ₦2,050 to ₦2,000 per litre.

In Port Harcourt, Masters cut its price from ₦1,935 to ₦1,900 per litre.

Prudent and Rain Oil in Warri also reduced their AGO prices by ₦10 each, from ₦1,950 to ₦1,940 per litre.

A petroleum products marketer, who spoke on condition of anonymity, told Vanguard that the latest depot price cuts could put pressure on filling stations to reduce their pump prices.

He, however, said motorists might not see the impact immediately because some retailers were still selling products purchased at higher prices.

“The latest depot reductions are expected to put pressure on filling stations to review their pump prices, particularly outlets buying directly from the affected depots or replenishing their stocks at the new lower rates,” he said.

“However, motorists may not see an immediate or uniform reduction. Stations still holding products purchased at higher prices may maintain existing pump prices until those stocks are depleted and replaced with cheaper supplies.”

The marketer added that competition among filling stations could also speed up the transfer of the lower depot prices to consumers.

“Where retailers begin buying at the lower depot rates, competition among filling stations could encourage downward adjustments, especially in areas where several outlets operate within close proximity,” he said.

He, however, explained that transportation costs, operating expenses and retail margins would also affect the final pump price.

“The extent of any reduction will also depend on transportation costs, operating expenses and retail margins. Consequently, the ₦20-₦24 decline recorded at some Lagos depots should not be interpreted as an automatic ₦20-₦24 reduction at the pump,” he said.

The marketer said a sustained reduction in energy costs could have wider benefits for the economy.

Meanwhile, WTI fell by $1.03, representing a 1.12 per cent decline, to $91.34 per barrel.

Brent crude also dropped by $0.29, or 0.29 per cent, to $100 per barrel.

The marketer, however, cautioned that changes in crude oil prices, exchange rates and supply costs could still affect the current downward trend in petrol prices.