Petrol prices could fall to around N1,200 per litre in parts of Nigeria following a recent reduction in wholesale fuel prices by the Dangote Petroleum Refinery, petroleum marketers have said.
The refinery cut its ex-depot price of Premium Motor Spirit (PMS) by N75 per litre, reducing the rate from N1,250 to N1,175. The adjustment has also prompted other fuel depots to lower their prices as global crude oil prices continue to decline.
Industry operators said retail fuel prices have not yet reflected the reduction because many filling stations are still selling stock purchased at higher prices. They noted that marketers usually need time to clear existing inventory before adjusting pump prices.
The latest price cut follows a sharp drop in international oil prices after a peace agreement between the United States and Iran eased tensions that had disrupted global energy markets. Crude oil prices, which had risen above $100 per barrel during the conflict, have since fallen below $80 per barrel.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said consumers should begin to see lower prices once new supplies purchased at the reduced rates reach filling stations.
According to him, petrol could sell between N1,200 and N1,250 per litre in Lagos, while prices in other parts of the country may remain slightly higher due to transportation and distribution costs.
Marketers explained that fuel loading activities often slow after major price adjustments, allowing retailers time to dispose of old stock before purchasing fresh supplies at lower prices.
Some industry stakeholders, however, argued that imported fuel appears cheaper than some locally refined products and called for increased competition in the downstream petroleum sector.
The price reduction is expected to provide relief to motorists and businesses that have faced rising transportation and operating costs in recent months. Analysts say further declines in pump prices could occur if crude oil prices continue to ease and global market conditions remain stable.
