Oil marketers have begun reducing the pump price of Premium Motor Spirit (PMS), commonly known as petrol, following a decline in depot prices and softer international crude oil prices.
MRS filling stations in Lagos and neighbouring areas have cut their petrol price by N20 per litre, from N1,370 to N1,350, while some independent marketers have reduced their prices to about N1,360 per litre from levels above N1,380.
The reductions come as wholesale petrol prices continue to ease across major petroleum markets in the country.
According to the latest Daily Depot Price Intelligence Report for Friday, September 25, petrol prices fell to as low as N1,303 per litre in Port Harcourt. Bulk Strategic, Masters, Sigmund and T.S.L depots in the city were listed at that rate.
In Lagos, several major depots were selling PMS at around N1,325 per litre, while the average price stood at N1,326 per litre. The report put average petrol prices at N1,318 per litre in Calabar and N1,315 per litre in Warri.
MRS’s new Lagos pump price of N1,350 therefore represents a N25 difference from the N1,325 per litre depot price recorded by monitored Lagos suppliers.
The latest decline also follows earlier reductions by the Dangote Petroleum Refinery and other major marketers. Dangote had reduced its petrol price to N1,325 per litre from N1,350, while several other depots in Lagos also adjusted their rates downward.
The downward movement has coincided with a fall in international crude oil prices. Brent crude declined by $2.28, or 2.14 per cent, to $104.30 per barrel, while West Texas Intermediate fell by $1.79, or 1.89 per cent, to $92.82 per barrel, according to the depot market report.
The decline in wholesale prices is expected to put further pressure on retailers to adjust pump prices as they replenish their inventories, although actual pump prices will continue to vary by location, transportation costs and individual marketers’ margins.
The development comes after a period of sharp volatility in the domestic petrol market, during which pump prices rose significantly amid movements in international crude prices and supply costs.
For motorists and other consumers, the latest adjustments offer some relief, although the extent to which the lower depot prices translate into nationwide pump-price reductions will depend on subsequent wholesale movements and operating costs.
Diesel prices have also shown regional variations. The latest report put Automotive Gas Oil (AGO) prices at about N1,790 per litre in Lagos and up to N1,900 per litre in Port Harcourt, while Liquefied Petroleum Gas (LPG) averaged N1,125 per kilogramme in Port Harcourt and N1,020 in Warri.
Industry watchers are expected to continue monitoring crude oil prices, foreign exchange movements and refined-product costs, which remain key factors influencing petrol prices in Nigeria’s deregulated downstream market.
