Petrol supply is tightening across the Lagos downstream market, with Petroleumprice.ng confirming less than 10 depots with PMS stocks at the moment, as more than 30 depots and jetty facilities remain vacant. Available depots with PMS are operating with low inventories, leaving the Lagos market with limited stock cover as replacement costs continue to rise.
The development has tightened the Lagos physical petrol market as the cost of replenishing PMS continues to rise, with the current landing cost at ₦1,420 per litre. The combination of elevated replacement cost, supply constraints and instability in the international market is putting pressure on depot operators to replenish stocks.
Petroleumprice.ng’s latest tracking shows PMS availability at only Pinnacle, MRS Tincan, Integrated, A.A. Rano, Ascon, Emadeb, Aiteo and Sahara amongst the very few Lagos depots with very limited stock. Even at these locations, available volumes remain low, leaving limited depth in the wholesale market should demand increase or existing stocks run down.
The supply situation has also been affected by Dangote Petroleum Refinery’s restricting products sales to some marketers holding active import licences. The affected companies are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy. Reports on the restriction said the refinery was prioritising domestic petrol supplies to marketers without active import licences.
With a significant number of jetties and depot facilities currently without product, the weakness is no longer confined to individual depot pricing. It is reflected in the physical availability of PMS across the Lagos supply chain, where operators require fresh cargoes to rebuild inventories and prevent further depletion.
Among the empty or inactive facilities tracked by Petroleumprice.ng are New Atlas Cove Jetty (NACJ), Single Buoy Mooring (SBM), HEYDEN (IJORA), Obat, Deejones, AIPEC Jetty 1 and 2, Integrated, Kris Oil, Puma/Wabeco, Deep Water Jetty, CHISCO, Bond Global, Rain Oil Ijegun, Julius Berger Jetty/Josep Dam, and fatgbems.
The concentration of vacant jetties and depots is particularly significant because these facilities form part of the receiving and distribution network through which imported or locally supplied petroleum products enter the Lagos downstream market. Sustained inactivity therefore leaves fewer channels available for replenishing depot inventories.
The pressure is coming as international crude and product markets remain volatile, with disruptions around the Strait of Hormuz adding to uncertainty over replacement costs and cargo availability. For Lagos depot operators, the immediate market challenge is therefore securing PMS at a price and volume that can support continued wholesale distribution.
The present stock position leaves the Lagos market exposed to a rapid tightening if fresh PMS cargoes are not received and existing depot inventories are not rebuilt. With fewer than 10 tracked depots currently carrying product and several operating with low stocks, further depletion could move the pressure from the depot market to retail stations.
For the downstream market, the immediate requirement is therefore additional product supply into Lagos to rebuild depot inventories before the current low-stock position develops into a broader supply disruption.