Private Depots Reduce Petrol Prices as Market Adjusts to Dangote Refinery’s Influence
Amid shifting dynamics in the downstream petroleum sector, several private depots have reduced petrol prices, reflecting the impact of Dangote Refinery’s recent price cut.
Price Adjustments Across Depots:
- Wosbab Depot lowered its price from N947 to N930 per litre.
- Rain Oil Depot also reduced its price to N935 per litre, down from N947.
- In Warri, Matrix Depot adjusted its rate from N970 to N960 per litre, while AYM Shafa implemented a similar reduction to N960.
- In Calabar, Zone 4 Depot cut its price by N8, bringing it down to N950 per litre from N958.
- Alkanes Depot set its price at N949 per litre, while Northwest Depot adjusted to N950 per litre.
Expert Analysis: Price Drop Was Inevitable
Reacting to these price adjustments, oil and gas expert Olatide Jeremiah stated that the reductions were expected following Dangote Refinery’s decision to lower its petrol price to N890 per litre.
He explained, “Dangote Refinery’s pricing strategy has forced private depots and importers to review their prices downward. His capacity in refining and gantry loading has positioned him as the market leader in the downstream sector. The era of hoarding and price manipulation is gone. Market competition has intensified, compelling all players to adjust accordingly. This should soon be reflected in lower pump prices for consumers.”
Jeremiah further urged regulatory authorities to closely monitor filling stations, ensuring that the decreasing depot prices translate into immediate reductions at the pump. He emphasized that retail price adjustments should be swift and transparent, preventing any undue exploitation of consumers.
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