Nigeria’s downstream oil market has entered a fresh pricing phase as major retailers, including the Nigerian National Petroleum Company Limited (NNPCL) and MRS Oil Nigeria Plc, slashed retail pump prices of Premium Motor Spirit (PMS) in key cities across the federation.
This adjustment reflects both a ₦40 per litre cut in ex-depot prices by Dangote Petroleum Refinery on June 30, and falling global crude benchmarks. Brent crude, the international oil price marker, traded at $68.30 per barrel as of Friday, July 4 its lowest in three months amid eased tensions in the Middle East.
Retailers React to Market Realities
At NNPCL filling stations in Abuja, petrol now sells at ₦910 per litre, down from ₦945. However, independent marketers still sell at ₦935 in some locations like Lugbe and Airport Road, as of July 6.
MRS, which receives direct allocations from Dangote Refinery, also revised pump prices across its outlets. In a circular to dealers, it pegged prices at ₦885 in Lagos, ₦895 in the South-West, ₦905 in the North-West and North-Central, and ₦915 in the North-East, South-East and South-South reflecting freight cost differentials.
Ex-Depot Price Drives the Trend
Dangote Refinery’s reduction from ₦880 to ₦840 per litre ex-depot was pivotal. The move aligns with market-based pricing principles under full deregulation. Independent marketers who initially resisted price adjustments due to existing stock are now aligning as inventory depletes.
Depot price data from Lagos shows RainOil, Matrix, Pinnacle, Swift, and Wosbab selling at ₦840, while Aiteo posted ₦837, and First Royal and Menj traded around ₦838. NIPCO and Satellite held at ₦844, and Integrated Energy sold at ₦839.
Price Discovery in Motion
On the Lagos-Ibadan Expressway, pump prices ranged from ₦875 to ₦910 per litre as of Sunday. For instance, As-Sallam sold at ₦875, AP at ₦880, RainOil at ₦910, while SGR and NIPCO settled at ₦880 and ₦900 respectively.
This variation reflects both lag time in stock turnover and the market’s ongoing price discovery a hallmark of deregulated fuel markets.
Marketers Call for Patience
PETROAN President, Billy Gillis-Harry, explained that marketers can only adjust prices once old stock is sold to avoid incurring heavy losses.
“Retailers can’t afford to lose ₦100/litre. Once existing stock clears, you’ll see more price reductions,” he said.
This explains why some retail stations still maintain higher prices despite lower depot rates.
Cleaner Fuel, Regional Variance
MRS noted in its pricing circular that its PMS now contains lower sulphur, in line with global specifications for cleaner-burning fuels, which improves engine performance and reduces emissions.
However, pump prices remain slightly higher in landlocked and difficult-to-access regions due to freight and storage logistics, a key component of cost build-up in the deregulated market.
Stable but Not Guaranteed
With the Dangote Refinery ramping up capacity and Brent prices softening, pump prices are likely to stabilise in the near term. But the naira-dollar exchange rate, distribution infrastructure, and global oil dynamics will continue to influence local pricing.