Nigerians Get Relief As Petrol Prices Drop at Filling Stations

• Filling stations have reduced the pump prices of petrol following the reduction of the Dangote Refinery gantry price
• Many filling stations are now selling from N1,199 to N1,245 per litre in Lagos and Ogun, depending on location
• Prices are still not uniform, and IPMAN explain to Legit.ng that marketers are still selling old stock

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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Pump prices of premium motor spirit have begun to drop in filling stations in some parts of Lagos and Ogun following the recent reduction in the gantry price of petrol by Dangote Petroleum Refinery.

This price adjustment responds to the reduction in global crude oil prices as Iran and the United States reached an agreement.

New fuel prices

With an N75 cut to its ex-depot price, petrol is now sold by the Dangote refinery at N1,175 per litre, down from N1,250.

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Punch reports that at the SGR filling station in Mowe, Ogun state, a litre of petrol sells for N1,199, the lowest price encountered at the stops we visited.

NIPCO, SAO, AP and MRS filling stations dispense a litre of fuel at N1,205 per litre, while Mobil petrol stations sell at N1,220 per litre.

A litre at Heyden filled from their station in Iperu went for N1,285 per litre.

Other filling stations selling petrol at N1,245 per litre include NNPC Retail outlets in Ogun.

Petrol prices to drop

Chinedu Ukadike, the Public Relations Officer of IPMAN, told Legit.ng during an interview that many filling stations are yet to reduce prices below N1,300 per litre because they are still managing old stock purchased at higher rates.

He explained that immediate price cuts could lead to losses for marketers still holding expensive inventory.

Ukadike said:

“This announcement is enabling people who have old stocks to clear out their stocks, not only clearing out their stocks but also enabling them to prepare to take the fresh stocks."

"Once the Dangote refinery announces a new price, there is a serious pause in loading. It will enable people who just bought new products to see how they can clear the old stocks within a window of a day or two."

He said once new products enter circulation, pricing adjustments will naturally follow.

Ukadike identified the cost of funds as another key factor affecting petrol pump prices, noting that financing expenses influence how quickly marketers adjust prices.

Depots slash petrol price

Earlier, Legit.ng reported that private depots in Nigeria have followed Dangote Petroleum Refinery in lowering petrol prices. The price cuts by operators range between N1 and N22 per litre, depending on location and volume.

The latest move by depot owners has now fuelled increased competition in the downstream oil industry for customers.

The reduction is attributed to lower global crude oil prices and the need to remain competitive in the domestic market.