The recent decline in international crude oil prices has prompted the Dangote Petroleum Refinery and other petroleum marketers to lower the prices of Premium Motor Spirit (PMS) at major depots in Lagos, Port Harcourt, Calabar and Warri.
The latest depot price report published by Petroleumprice.ng showed that Lagos recorded the largest price adjustments, with several operators reducing their petrol prices by between N20 and N24 per litre.
The price reductions occurred as Brent crude fell below $100 per barrel, while West Texas Intermediate (WTI), the United States benchmark, declined to $91.17 per barrel.
In Lagos, the Dangote Refinery brought its PMS price down from N1,350 to N1,325 per litre, a reduction of N25. Ascon, Integrated, Pinnacle and Sahara also lowered their prices by N24, with their products now ranging from N1,326 to N1,327 per litre.
MRS also adjusted its price downward by N20, bringing it to N1,332 per litre, while Wosbab’s current price stood at N1,330.
The latest movement in depot prices came after crude oil prices recorded different movements in the international market.
Data from Oilprice.com showed that Brent crude dropped to $99.77 per barrel. WTI also declined by $1.20, equivalent to 1.30 per cent, to $91.17 per barrel. Brent had reached $109 per barrel the previous week.
Murban crude, however, recorded an increase, rising by $4.18, or 3.80 per cent, to $114.20 per barrel.
Changes in international crude prices are important to Nigeria’s downstream petroleum market because they affect the cost of imported refined products as well as the prices of petroleum products refined locally.
The decline in the prices of Brent and WTI therefore allowed depot operators to make downward adjustments to their petrol prices.
Similar reductions were recorded in other locations. In Port Harcourt, Masters lowered its PMS price from the previous level by N2 to N1,328 per litre, while Stockgap reduced its price by N7 to N1,323.
Bulk Strategic and Sigmund both listed petrol at N1,328 per litre, while Matrix maintained its price at N1,330.
Calabar also recorded price reductions. Mainland reduced its petrol price by N7 to N1,320 per litre, making it the lowest price recorded among the locations covered.
Alkanes also reduced its price by N2 to N1,325, while Matrix retained its N1,330 price. Sobaz moved in the opposite direction, increasing its price by N1 to N1,328.
The Warri market also recorded a combination of increases and reductions, although downward adjustments were more common.
Keonamex reduced its PMS price by N3 to N1,327. Nepal lowered its price by N1 to N1,329, while Prudent cut its price by N2 to N1,328.
Matrix, however, increased its price by N3 to N1,330, while Optima raised its price by N1 to N1,328.
The automotive gas oil (AGO), commonly known as diesel, market also recorded price reductions in some areas.
In Lagos, Chipet reduced its AGO price by N15 to N1,815 per litre. Ascon, Duport and Integrated each made a N5 reduction, bringing their prices to the same N1,815 level.
Diesel prices from Ibachem, Ibeto, Dangote, Obat and Pinnacle ranged from N1,815 to N1,860 per litre.
In Port Harcourt, Masters recorded a N35 reduction in its AGO price, bringing it down to N1,900 per litre.
Matrix recorded a N50 reduction in Warri, moving its AGO price to N2,000 per litre. Prudent and Rain Oil also reduced their prices by N10 to N1,940.
The latest changes in depot prices come as the international oil market continues to experience volatility, with crude benchmarks moving differently in response to factors affecting global supply and demand.
Natural gas prices also moved upward, increasing by 2.96 per cent to $2.92, according to the market data.
The latest reduction in PMS depot prices shows that the recent fall in crude oil prices is beginning to reflect in Nigeria’s domestic wholesale petroleum market.
However, the direction of further price reductions will depend on changes in crude oil prices, foreign exchange and the cost of refined petroleum products.
The reduction in depot prices could also affect the prices paid by consumers at petrol stations as marketers restock at the lower rates. However, pump prices differ depending on location, transportation costs and the margins set by individual marketers.
Petrol currently sells between N1,370 and N1,450 per litre, depending on the location.
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