Fresh competition in Nigeria's downstream petroleum sector gathered momentum on Monday as the Dangote Petroleum Refinery and several depot operators reduced the ex-depot prices of petrol and diesel following renewed calls by the Federal Government for pump prices to reflect the decline in global crude oil prices.
The latest price adjustments came shortly after the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, met with industry stakeholders to discuss cost-reflective pricing in the deregulated downstream market.
The meeting, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was attended by representatives of the Dangote Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Market data released after the meeting showed that Dangote Refinery reduced its Lagos ex-depot price of Premium Motor Spirit (PMS) by N3 per litre, from N1,079 to N1,076 per litre, while leaving its diesel price unchanged at N1,500 per litre.
Other marketers also announced price reductions as competition intensified.
NIPCO reduced its depot price by N2 to N1,076 per litre, while Pinnacle cut its price by N3 to N1,075 per litre. Sahara, AIPEC and African Terminal each lowered their petrol prices by N4 to N1,075 per litre, while Aiteo maintained its previous price.
Diesel prices also recorded downward movement across several depots. Rain Oil reduced its diesel price by N15 to N1,430 per litre, while Ibeto, Duport and Ibachem also adjusted their prices to N1,430 per litre.
In Port Harcourt, Matrix posted one of the largest reductions, cutting its petrol price by N8 to N1,087 per litre and reducing diesel by N55 to N1,465 per litre. Sigmund also lowered its petrol price by N12 to N1,082 per litre but increased its diesel price slightly by N2 to N1,463 per litre.
In Calabar, Fynfield reduced its petrol price by N7 to N1,090 per litre, while Soroman lowered its price by N5 to the same level.
Warri depots also joined the trend, with Matrix and Prudent reducing petrol prices by N5 to N1,085 per litre. Prudent cut diesel by N25 to N1,475 per litre, while A.Y.M. Shafa reduced its diesel price by N3 to N1,455 per litre.
Industry analysts attributed the widespread reductions to increased local refining capacity, stronger competition among suppliers and the sustained decline in international crude oil prices.
Speaking after the stakeholders' engagement, Lokpobiri said there was a clear need for domestic petrol prices to reflect developments in the global oil market.
He noted that while the government did not interfere when marketers raised prices during periods of high crude oil prices, consumers should equally benefit now that Brent crude has fallen below $70 per barrel.
According to the minister, deregulation does not permit arbitrary pricing or excessive profiteering, adding that the Petroleum Industry Act empowers the NMDPRA to discourage unfair market practices.
He expressed optimism that continued consultations with marketers would lead to lower pump prices in the coming weeks.
Also addressing the meeting, NMDPRA Chief Executive, Mallam Rabiu Umar, said the authority convened the dialogue because domestic PMS prices had remained relatively high despite the sustained decline in crude oil prices.
He stressed that deregulation should deliver competitive pricing and consumer benefits without undermining the profitability of operators.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) projected that petrol could eventually sell below N800 per litre once its members begin lifting products directly from the Dangote Refinery.
IPMAN National President, Abubakar Garima, said independent marketers had already reduced pump prices by about N125 per litre across the country and pledged that further reductions would follow as product acquisition costs continue to decline.
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