Prices of petrol and diesel at Nigerian depots have fallen sharply following a steep drop in global crude oil prices. Brent crude plummeted to $65 per barrel on Friday the lowest price recorded since 2021 triggering immediate adjustments at key petroleum product loading points.
Depot pricing hits new lows
Petroleum marketers recorded a significant decline in depot prices across the board. Premium Motor Spirit (PMS), also known as petrol, saw reductions at major depots:
- Dangote: ₦891/litre (₦4.5 drop)
- AIPEC: ₦897/litre (₦3 drop)
- AITEO: ₦894/litre (₦2 drop)
Diesel (Automotive Gas Oil – AGO) also saw fresh markdowns:
- Dangote: ₦1,022/litre (₦2 drop)
- WOSBAB: ₦1,017/litre (₦2 drop)
- IBETO: ₦1,015/litre (₦3 drop)
The trend reflects a market reaction to the ongoing slump in global oil prices, with traders and suppliers responding quickly to preserve competitiveness and avoid stockpiling at higher costs.
Global oil crash drives domestic ripple effect
The sharp decline in Brent crude followed new tariff measures announced by U.S. President Donald Trump, including sweeping import duties on goods from China, the European Union, and Canada. The tariffs, set to take effect from 9 April, have sparked fears of a global trade war that could choke energy demand.
Adding to the pressure, OPEC+ announced a surprise increase in oil production quotas, reversing previous voluntary cuts. The decision to add over 135,000 barrels per day into a fragile market contributed to the 6.2% price drop in a single session.
Outlook and market response
Depot owners expect the downward trend to continue if the global supply glut worsens or if demand remains weak due to macroeconomic uncertainty. However, pump price reductions at filling stations may lag behind, as marketers account for transportation costs, forex volatility, and existing inventory purchased at higher rates.
Industry stakeholders are calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure fair pricing practices and transparency as market conditions evolve.
Experts urge strategic response
Energy analysts warn that prolonged low crude prices could impact government revenue and investment in the downstream sector, particularly as local refiners ramp up production under the Petroleum Industry Act (PIA). They advise the government to stabilise forex markets and fast-track regulatory reforms to cushion the impact of global shocks.
For now, falling depot prices offer a short-term relief to marketers and potential savings for consumers if market dynamics allow the reductions to filter down.