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The reductions were recorded across several major markets on Tuesday amid a decline in international crude oil prices. Diesel prices also recorded sharper decreases, falling by as much as N50 per litre in Warri and N35 per litre in Port Harcourt.
In Lagos, Ascon, Integrated and Sahara reduced their petrol depot prices by N24 per litre, from N1,351 to N1,327. Pinnacle also reduced its price by N24, from N1,350 to N1,326, while MRS cut its price by N20 to N1,332 from N1,352.
Dangote Refinery, however, maintained its depot price at N1,325 per litre.
In Port Harcourt, Ascon and Integrated reduced their prices by N5 each to N1,815 per litre, while Ibeto retained its price at N1,815.
Mainland in Calabar reduced its price by N7 to N1,320 from N1,327, while Alkanes cut its price by N2 to N1,325.
In Warri, Keonamex reduced its price by N3 to N1,327, while Nepal cut its price by N1 to N1,329.
Diesel prices also fall
The diesel market recorded larger reductions across some locations.
Matrix in Warri reduced its Automotive Gas Oil (AGO) price by N50 per litre, from N2,050 to N2,000.
Masters in Port Harcourt also cut its price by N35 to N1,900 from N1,935, while Prudent and Rain Oil in Warri reduced their prices by N10 each to N1,940 from N1,950.
A petroleum products marketer said the lower depot prices could put pressure on filling stations to adjust their retail prices.
“The latest depot reductions are expected to put pressure on filling stations to review their pump prices, particularly outlets buying directly from the affected depots or replenishing their stocks at the new lower rates,” he said.
However, the marketer cautioned that consumers may not immediately see the reductions at filling stations because some retailers are still selling products purchased at higher prices.
“However, motorists may not see an immediate or uniform reduction. Stations still holding products purchased at higher prices may maintain existing pump prices until those stocks are depleted and replaced with cheaper supplies,” he said.
Lower depot prices may reach consumers gradually
The marketer explained that competition among filling stations could encourage retailers to pass the lower costs on to consumers, particularly in areas with several petrol stations operating close to one another.
“Where retailers begin buying at the lower depot rates, competition among filling stations could encourage downward adjustments, especially in areas where several outlets operate within close proximity.
“The extent of any reduction will also depend on transportation costs, operating expenses and retail margins. Consequently, the N20–N24 decline recorded at some Lagos depots should not be interpreted as an automatic N20–N24 reduction at the pump.”
This means the reduction in depot prices does not necessarily translate into an equal reduction in the price motorists pay at the pump.
The marketer added that cheaper diesel could provide broader relief for businesses because manufacturers, farmers, logistics companies and other operators rely heavily on diesel for transportation and power generation.
Crude oil prices remain a key factor
The reduction in local depot prices comes as international crude oil prices continue to fluctuate.
West Texas Intermediate (WTI) fell by $1.03, or 1.12 per cent, to $91.34 per barrel, while Brent crude declined by $0.29, or 0.29 per cent, to $100 per barrel.
The marketer warned that movements in crude oil prices, exchange rates and supply costs could still influence the direction of petroleum product prices.
For motorists, the key factor will be how quickly filling stations replace their higher-priced inventories with products purchased at the latest lower depot rates.
