Nigeria’s downstream petroleum market is witnessing intensified competition as petrol depot prices continue to decline across the country’s major fuel distribution centres, offering fresh hope that consumers could eventually benefit from lower pump prices.
New market data released on Tuesday showed that fuel marketers reduced depot prices by as much as N23 per litre, with no major supplier increasing prices during the period. The reductions were recorded across key supply hubs, including Lagos, Warri, Calabar and Port Harcourt, reflecting a more competitive market driven by improved domestic fuel production and stronger supply.
In Lagos, the Dangote Petroleum Refinery maintained its ex-depot petrol price at N1,216 per litre, one of the lowest available in the country. Several competing marketers responded by lowering their prices to remain competitive. Pinnacle matched Dangote’s rate after a N2 reduction, while MRS cut its price to N1,222 per litre. Emadeb recorded a larger reduction of N7, bringing its price to N1,218 per litre. Other suppliers, including Aiteo, Nipco, Ascon, Shema and T-Time, kept their prices within the N1,218 to N1,220 range.
The latest adjustments highlight the growing impact of increased local refining capacity, particularly from the Dangote Refinery, alongside continued fuel imports by independent marketers. The improved supply has created stronger competition among depot operators seeking to attract wholesale buyers.
Warri also experienced significant price reductions. Several depots, including Bulk Strategic, Liquid Bulk, Masters, Matrix and Sigmund, reduced petrol prices to around N1,245 per litre. Rain Oil posted one of the largest cuts, slashing its depot price by N23 per litre, while Matrix reduced its price by N10. TSL also lowered its rate by N6.
In Calabar, Northwest reduced its depot price by N15 to N1,235 per litre, while Mainland cut its rate by N10. Hong Petroleum offered the lowest quoted price in the area after reducing its rate to N1,233 per litre.
Port Harcourt recorded similar movements, with Matrix lowering its petrol price by N3 and Optima cutting its rate by N2. Rain Oil also implemented a N23 reduction, bringing its depot price in line with competitors.
Industry observers say the widespread price reductions indicate healthier supply conditions and increasing competition among marketers. The narrowing gap between Lagos and other regional markets also suggests that fuel pricing is becoming more uniform across Nigeria, with depot prices now ranging from N1,216 to about N1,245 per litre.
Despite the encouraging trend, analysts caution that motorists may not immediately experience similar reductions at filling stations. Retail pump prices will still depend on transportation costs, distribution expenses, operating margins and other logistical factors before reaching consumers.
The decline extends beyond petrol. Diesel, widely used by industries and commercial transport operators, also recorded notable price reductions. In Lagos, Matrix cut diesel prices by N55 to N1,645 per litre, while Aiteo reduced its rate by N15 to N1,630 per litre. In Warri, Matrix lowered diesel prices by N70, while A.Y.M Shafa reduced its rate by N40.
The latest developments suggest Nigeria’s fuel market is entering a more competitive phase, where increased domestic refining, improved product availability and market competition are placing downward pressure on wholesale fuel prices. If the trend continues and distribution costs remain stable, consumers could see further adjustments at retail filling stations in the coming weeks.
