Petrol depot prices fall in Lagos amid competition, diesel prices drop sharply

Depot prices for Premium Motor Spirit (PMS), commonly known as petrol, have eased across various terminals in Lagos, Nigeria. Marketers adjusted prices downwards, with most major depots reducing their ex-depot prices by N1 to N18 per liter. Diesel prices experienced even more significant reductions in certain areas, dropping by up to N70 per liter.

These shifts in the market are attributed to heightened competition among petroleum product suppliers and growing domestic refining capacity. The Dangote Refinery, a key player, maintained relative price stability, with its Lagos PMS price increasing marginally from N1,175 to N1,176 per liter. However, other terminals implemented notable price cuts. Rain Oil led the reductions, lowering its petrol price by N18 from N1,180 to N1,162 per liter.

While Lagos saw a general decline, some terminals in other regions experienced price increases, highlighting regional supply and logistics variations. Port Harcourt, for instance, saw Africanterminal and Duport raise PMS prices. The diesel market showed more dramatic decreases, particularly in Port Harcourt, where Matrix and Sigmund reduced prices by N70 and N68 respectively. Industry experts suggest these adjustments underscore the increasingly competitive nature of Nigeria's downstream oil market, influenced by local refining output, inventory levels, and transportation costs.

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The latest adjustments highlight the increasingly competitive nature of Nigeria’s petroleum products market, where local refining output, depot inventories and transportation costs continue.