The downward movement in Nigeria's petrol market gathered pace on Wednesday as Lagos depot owners maintained lower loading prices for Premium Motor Spirit (PMS), following a sharp decline in international crude oil prices driven by easing supply concerns in the global market.
Checks by Petroleumprice.ng showed that major fuel depots in Lagos sold PMS between ₦1,159 and ₦1,160 per litre on June 24, reflecting the increasingly competitive market environment that has emerged in recent months.
At the close of trading, Integrated, African Terminal, Bono, Emadeb, AA Rano and MRS Tincan all maintained PMS prices at ₦1,160 per litre. Aiteo reviewed its price downward during the day to ₦1,159 per litre, making it one of the cheapest loading points for marketers sourcing products in Lagos.
The latest depot prices coincided with a sharp sell-off in the international oil market. As at the time of writing 6:40 p.m. (WAT), Brent crude had fallen to $73.91 per barrel, down 4.11 per cent, while U.S. benchmark West Texas Intermediate (WTI) dropped to $70.45 per barrel, representing a decline of 3.77 per cent.
The fall pushed Brent below the $75 threshold for the first time in weeks,extending losses recorded since tensions in the Middle East began to ease. Market sentiment has shifted significantly following reports of increased crude shipments through the Strait of Hormuz and growing expectations that oil exports from the region will continue to normalise.
For Nigeria's downstream sector, the decline in crude prices is gradually translating into softer product pricing expectations. Crude oil remains the single largest determinant of refined petroleum product costs, meaning sustained weakness in international benchmarks could create additional room for price reductions across the domestic supply chain.
The convergence of depot prices around the ₦1,160 per litre mark also highlights the intense competition among suppliers seeking to retain market share. Since the deregulation of the downstream sector, depot operators have increasingly adjusted prices in response to changes in global oil prices and domestic demand conditions.
Industry stakeholders say marketers will continue to monitor crude oil movements closely in the coming days. Should Brent remain below $75 per barrel further downward reviews in depot and retail petrol prices may become increasingly likely, offering relief to transport operators, businesses and consumers grappling with high energy costs.