According to a report by Vanguard Newspaper on Wednesday, September 23, the price of petrol has dropped by as much as N24 per litre at several major depots in Lagos, raising expectations that motorists could begin to see lower pump prices as filling stations replenish their supplies.
The latest reductions were recorded on Tuesday as international crude oil prices also declined, although the extent of the movement varied across different petroleum markets.
In Lagos, Ascon, Integrated and Sahara depots reduced their petrol prices from N1,351 to N1,327 per litre, representing a N24 decline.
Pinnacle also cut its price by N24, moving from N1,350 to N1,326 per litre, while MRS reduced its price by N20 from N1,352 to N1,332.
Dangote Refinery, however, maintained its depot price at N1,325 per litre.
The reductions were not limited to Lagos, as some depots in other parts of the country also adjusted their prices downward.
In Port Harcourt, Ascon and Integrated reduced their petrol prices by N5 each, from N1,820 to N1,815 per litre. Ibeto retained its price at N1,815.
Mainland depot in Calabar reduced its price by N7 from N1,327 to N1,320, while Alkanes cut its price by N2 to N1,325.
In Warri, Keonamex reduced its price from N1,330 to N1,327, while Nepal made a N1 reduction to N1,329.
The diesel market also recorded notable reductions, with AGO prices falling by as much as N50 per litre in some locations.
Matrix in Warri reduced diesel from N2,050 to N2,000 per litre, while Masters in Port Harcourt moved from N1,935 to N1,900.
Prudent and Rain Oil in Warri also reduced their AGO prices by N10 each, bringing them down from N1,950 to N1,940.
A petroleum products marketer who spoke anonymously said the lower depot prices could eventually put pressure on filling stations to adjust their pump prices.
However, he cautioned that motorists may not immediately experience the same level of reduction because some retailers are still selling products purchased at higher prices.
He explained that filling stations would likely need to exhaust existing stocks before fully reflecting the new depot rates in their pump prices.
The marketer also said competition could speed up the process, particularly in areas where several filling stations operate close to one another.
He warned that transportation expenses, operating costs, retail margins, exchange rates and crude oil prices would continue to influence the final pump price.
Meanwhile, WTI crude fell by $1.03, or 1.12 per cent, to $91.34 per barrel, while Brent crude declined by $0.29, or 0.29 per cent, to $100 per barrel.
The latest depot movement therefore provides room for possible pump-price reductions, but the size and timing of any adjustment will depend on when individual filling stations replenish their stocks at the lower rates.
SOURCE: Charles’News
