Private petroleum depots in Nigeria have further reduced their petrol prices by as much as N35 per litre, intensifying competition in the downstream oil market and putting pressure on other suppliers to review their rates.

The latest reductions have brought some depot prices closer to the rate offered by Dangote Refinery, which recently cut its petrol price by N50 per litre.

Although several private depots are still selling above the refinery’s current rate, the price cuts signal growing competition in Nigeria’s increasingly competitive petroleum market.

Private depots cut petrol prices

Fresh data obtained from PremiumPriceNG showed that several major depot operators have adjusted their petrol prices downward. Pinnacle Depot currently sells petrol at about N1,165 per litre, while AITEO and African Terminal have reduced their prices to around N1,168 per litre.

Sigmund recorded one of the sharpest reductions, cutting its petrol price by N35 to N1,180 per litre. The new depot rates could influence the prices charged by independent marketers and, eventually, the cost motorists pay at filling stations across the country.

The development comes just days after Dangote Refinery reduced its petrol price by N50 per litre, triggering renewed competition among major suppliers.

Dangote Refinery faces stronger competition

Dangote Refinery’s latest price reduction has intensified competition across the downstream petroleum sector, with private depot operators now adjusting their rates to remain attractive to marketers.

The price war could provide some relief for consumers if the reductions are sustained and distributors pass the savings down to filling stations.

Lower petrol prices could also ease transportation costs, particularly for commercial motorists and businesses that rely heavily on road transportation. However, the extent to which consumers benefit will depend on logistics costs, marketers’ margins, regional supply conditions and other distribution expenses.

Global oil market remains volatile

The latest Nigerian petrol price cuts are coming despite renewed volatility in the international crude oil market. Recent data from Oilprice.com showed crude prices rising in early trading on Monday as uncertainty surrounding the Strait of Hormuz continued to weigh on energy markets.

As of 3:37 a.m. WAT, Brent crude was trading at $84.37 per barrel, representing a 0.98% increase, while West Texas Intermediate stood at $78.76, up 0.74%.

The movements followed fresh uncertainty over the reopening of the Strait of Hormuz, one of the world’s most important energy shipping routes.

Iran has reportedly attached several conditions to reopening the strategic waterway, complicating expectations of a quick return to normal shipping activity.

Cheaper petrol could bring relief

The reduction in depot prices could eventually translate into lower petrol prices for consumers if marketers pass the savings through the supply chain.

A sustained decline could provide relief to households and businesses still grappling with high transportation and operating costs.

With Dangote Refinery and private depots competing more aggressively on price, the downstream petroleum market could see further adjustments in the coming weeks. For consumers, the biggest benefit would be a sustained reduction at filling stations rather than temporary depot-level price cuts.

Dangote Refinery sells petrol cheapest

Legit.ng earlier reported that Private depots have adjusted their petrol prices, but Dangote Refinery remains the cheapest place to buy petrol at N1,166 per litre, down from N1,215 previously.

The latest depot price list shows that PMS prices range from N1,166 to N1,182 per litre across the locations listed., Dangote Refinery and Pinnacle are currently the lowest-priced suppliers, while Liquid Bulk and Matrix recorded the highest price of N1,182 per litre.