Petrol prices at Lagos depots began the week on a downward trend as marketers slashed rates in a fresh wave of price competition. Industry observers say the renewed price war is driven by high inventory levels and increasing pressure to secure market share.
PMS Prices Dip Across Key Depots
As of Monday, May 26, 2025, the average price of Premium Motor Spirit (PMS) dropped marginally at several terminals:
- Dangote: ₦828 → ₦827
- Eternal: ₦832 → ₦830
- Nipco: ₦838 → ₦837
- AA Rano: ₦831 → ₦830
- Menj: ₦831 → ₦830
Analysis:
While the price cuts appear minor, the uniform downward shift across multiple depots signals a broader trend. Marketers are responding to competitive pressures and stable offshore supply by shaving off margins to attract downstream buyers.
Diesel Market Mirrors Petrol Trend
The Automotive Gas Oil (AGO) segment also experienced modest fluctuations, with some depots dropping prices while others saw slight increases:
- Chipet: ₦917 → ₦916
- Menj: ₦917 → ₦915
- Ibeto: ₦917 → ₦918
- Dangote: ₦925 → ₦925
- Integrated: ₦917 → ₦919
- Nipco: ₦940 → ₦915
Analysis:
The sharp drop at Nipco from ₦940 to ₦915 stands out as the most aggressive cut among AGO suppliers. This move may trigger further reactions from competitors in the coming days as the diesel market responds to both demand-side pressures and forex-linked volatility.
Competitive Pricing Strategy Intensifies
Downstream operators have adopted flexible pricing strategies to manage inventory turnover amid sluggish retail demand. With Dangote and Nipco maintaining refinery-level volumes, independent marketers are racing to stay relevant through aggressive depot pricing.
A depot manager at Apapa told Petroleumprice.ng:
“We’re seeing marketers undercut one another to retain loyal customers. The lower pricing is tactical, it keeps products moving while keeping rivals on edge.”
Outlook: More Price Adjustments Ahead
Market watchers predict further depot price adjustments throughout the week as forex uncertainty, Brent fluctuations, and freight dynamics continue to influence wholesale pricing strategies. Retail prices may lag behind but will eventually respond to depot movements if the trend persists.
As Nigeria’s downstream market grows increasingly competitive, depot-level pricing remains a key battleground. For consumers and retailers alike, the start-of-week price drops may offer temporary relief, but longer-term impacts will depend on global oil dynamics and domestic supply chain performance.