Petrol prices drop as Six depot owners slashes price amid heightened competition

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Six depot owners in Nigeria’s petroleum industry have reduced the prices of Premium Motor Spirit (PMS), also known as petrol, due to heightened competition in the downstream sector. The depot owners that slashed their prices include:

– Emadeb: Reduced its depot price to N827 per litre from N903 per litre.

– First Royal: Slashed its price to N826 per litre from N828 per litre.

– MENJ: Reduced its price to N826 per litre from N827 per litre.

– Aiteo: Reduced its price to N825 per litre from N826 per litre.

– Pinnacle: Reduced its price to N850 per litre from N856 per litre.

– Hyde: Reduced its price to N868 per litre from N869 per litre.

For further information, read more details here

According to Petroleumprice.ng, the depot prices of petrol are expected to continue dropping in the coming weeks due to the relatively low prices of crude oil in the global market, currently standing at $65 per barrel.

An industry expert noted that the downward review of depot prices, which are now at par with the Dangote Refinery’s N825 per litre gantry price, indicates that the refinery may soon reduce its price further. “With the downward review of depot prices, currently standing at par with the Dangote Refinery’s N825 per litre gantry price, there are indications that the refinery would soon reduce its price further,” he said.

Dr. Billy Gillis-Harry, National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), attributed the price reduction to competition in the domestic market. “The depot owners imported commercial quantities of petrol from the global market. Without the downward price adjustment, it would be difficult for them to sell in the domestic market. It is their response to the competition in the domestic market,” he said.

Gillis-Harry also noted that while healthy competition is beneficial for consumers and the sector, too much competition could become harmful. “We expect further reduction as competition continues. But too much competition could become harmful to the sector. We need healthy competition to impact on consumers and the sector,” he added.

Recently, Dangote Petroleum Refinery & Petrochemicals stated that despite fluctuations in global crude oil prices, it has consistently reduced the price of petrol. According to Anthony Chiejina, group chief branding and communications officer, the decision to maintain price stability reflects the company’s commitment to supporting the Nigerian economy and alleviating the burden on consumers.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post