Motorists in Lagos and Ogun states are beginning to enjoy lower petrol prices following a recent reduction in fuel loading costs by the Dangote Petroleum Refinery.
Checks across several filling stations along the Lagos-Ibadan Expressway showed that many marketers have reduced their pump prices to an average of N1,205 per litre. This comes after the Dangote refinery lowered its petrol gantry price, prompting retailers to adjust their rates in order to attract customers and remain competitive.
Before the latest adjustment, petrol was selling for around N1,280 per litre at many stations. However, as competition increased, several outlets introduced lower prices to gain a larger share of customers.
Among the stations surveyed, SGR Filling Station in Mowe offered the lowest price, selling petrol at N1,199 per litre. Other marketers, including NIPCO, SAO, AP and MRS, sold the product at N1,205 per litre. Mobil stations dispensed petrol at N1,220 per litre, while Heyden sold at different rates depending on location, with prices ranging from N1,210 to N1,285 per litre. Meanwhile, Nigerian National Petroleum Company Limited retail outlets maintained a pump price of N1,245 per litre.
The latest price adjustments have influenced consumer behaviour, as motorists were observed flocking to stations offering cheaper fuel while avoiding outlets with higher prices.
The reduction follows developments in the global oil market. Over the past few weeks, crude oil prices have fallen significantly after tensions between the United States and Iran eased following a peace agreement. During the conflict, crude oil prices surged to about $120 per barrel, causing fuel prices in many markets to rise sharply.
As global oil prices began to retreat to around $80 per barrel, the Dangote refinery responded by reducing its petrol loading price by N75 per litre. The refinery lowered its gantry price from N1,250 to N1,175 per litre, creating room for marketers to reduce retail prices.
Private depot operators also reacted to the market changes by lowering their own prices to around N1,180 per litre. This helped trigger a broader downward movement in fuel prices across parts of the country.
Diesel prices have also experienced a decline. Recent market data showed that the Dangote refinery reduced its diesel gantry price by N100 per litre, bringing the cost down from N1,600 to N1,500 per litre. The adjustment represents a 6.25 percent reduction and marks the second diesel price cut within a week.
Despite the reductions, some Nigerians believe fuel prices should have fallen more sharply considering the significant drop in global crude oil prices.
Responding to such concerns, a source within the Dangote Group explained that the refinery is still processing crude oil purchased when international prices were much higher. According to the source, fuel prices cannot be adjusted instantly because refiners must first recover the costs of previously acquired crude supplies.
The source added that fuel prices could decline further in the future if crude oil prices remain stable or continue to fall. However, current pricing decisions are being influenced by existing inventory purchased at higher costs.
Industry observers expect fuel prices to remain under pressure in the coming weeks as competition among marketers increases and global oil market conditions continue to improve.
