More Nigerian Filling Stations to Reduce Fuel Pump Prices — Marketers

Petroleum products marketers have said more filling stations across Nigeria are likely to reduce their petrol pump prices as operators respond to declining landing costs and increasing competition in the downstream sector.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, disclosed this while reacting to recent reductions in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL), MRS and other fuel retailers.

According to him, the decline in the landing cost of imported petrol is creating room for marketers to review their prices downward in order to attract more customers.

He explained that operators are expected to remain competitive by adjusting pump prices whenever market conditions become favourable.

“More filling stations are expected to review their petrol prices with favourable landing costs. Filling stations would want to remain competitive,” Gillis-Harry said.

The latest development follows recent price adjustments across several retail outlets as competition in the deregulated downstream petroleum market continues to intensify.

Dangote Refinery currently sells petrol at a gantry price of N1,215 per litre, while several depot operators have also revised their ex-depot prices to between N1,215 and N1,225 per litre.

Despite the reductions at the supply level, motorists in Abuja and surrounding areas still purchase petrol at prices ranging between N1,265 and N1,310 per litre, depending on the filling station.

Industry observers believe further reductions could occur if marketers continue to benefit from lower supply costs and stable foreign exchange conditions.

The decline in global crude oil prices has also contributed to expectations of lower fuel prices.

As of Tuesday, Brent crude traded at approximately 78 dollars per barrel, while West Texas Intermediate (WTI) crude sold for around 75 dollars per barrel.

Lower crude oil prices generally reduce the cost of refined petroleum products in the international market, potentially lowering import and landing costs.

Marketers say continued improvements in market conditions could encourage additional retail outlets to adjust their prices in the coming weeks.

The expected price reductions are anticipated to provide some relief for consumers who have faced rising transportation and living costs since the deregulation of Nigeria’s downstream petroleum sector.