The loading cost of Premium Motor Spirit (PMS) at private depots dropped to N925 per litre on Monday, marking a N27 decrease from the highest depot price of N952 per litre recorded last Friday.

According to petroleum marketers, the reduction was triggered by Dangote Petroleum Refinery’s decision to lower its ex-depot price of PMS from N950 to N890 per litre, effective from Saturday. However, the sudden price drop has left many marketers who purchased at higher costs facing potential losses worth millions of naira as they are now forced to sell below cost.

A survey of depot price movements showed significant reductions across various facilities, although the impact on retail pump prices is yet to be seen.

• Nipco Depot: Reduced from N952 to N935 per litre

• Chipet Depot: Lowered from N945 to N935 per litre

• Aiteo Depot: Dropped from N942 to N925 per litre

• Wosbab Depot: Cut prices from N947 to N930 per litre

• Rain Oil Depot: Reduced from N947 to N935 per litre

• Matrix Depot (Warri): Lowered from N970 to N960 per litre

• AYM Shafa (Warri): Adjusted from N970 to N960 per litre

• Zone 4 Depot (Calabar): Dropped from N958 to N950 per litre

• Alkanes Depot: Now selling at N949 per litre

• Northwest Depot: Adjusted to N950 per litre

Reacting to the development, oil and gas expert Olatide Jeremiah said the price drop was inevitable given Dangote Refinery’s growing influence in the market.

“Dangote Refinery’s reduction of petrol to N890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in refining and gantry loading has earned him the market leader in the downstream sector. The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through a reduction of fuel at the pump,” he stated.

Jeremiah further urged regulatory authorities to ensure filling stations adjust prices accordingly, so consumers benefit from the cost reductions at depots.

While depot prices are falling, retail petrol prices at filling stations remain largely unchanged, with many marketers waiting to deplete existing high-cost stock before adjusting pump prices.